Third-quarter earnings fell 8 percent to P3.1 billion as coal segment contributions declined with stabilizing market indices, the company said in a stock exchange filing on Wednesday.
Management’s view
“As anticipated, stabilizing market prices exerted pressure on our margins. Our third-quarter results also reflect the seasonal impact of the rainy season on coal shipments and electricity prices, both of which we were able to partially offset through focused cost management and operational efficiency initiatives,” said SMPC president and chief operating officer Maria Cristina C. Gotianun.
Outlook on coal, energy prices
The Newcastle Index dropped 5 percent to US$140.3, while the Indonesian Coal Index 4 stayed flat at US$51.7.
Average electricity selling prices held steady at P4.80/kWh, balancing stronger bilateral contract prices and weaker spot market rates.
“For the remainder of the year, we expect coal and electricity prices to remain stable. Our focus is on meeting our coal production target of 16 million metric tons and achieving a balance in our contracted generation capacity mix,” Gotianun said.
