The group expects capital spending (capex) to drop about 68 percent to P1.9 billion from P5.9 billion in 2025, its latest quarterly report showed, reflecting deferred investments and refleeting projects tied to its coal operating contract (COC).
The contract, which covers Semirara Island and is set to expire in 2027, was opened to competitive bidding after the government rejected the company’s request for an extension.
That shift is forcing Semirara to hold back on major capital commitments until there is clarity on the outcome of the auction.
The Department of Energy has since deferred the coal auction “until further notice”—The Philippine Star reported last week—extending the uncertainty and reinforcing the group’s cautious stance on spending.
Semirara confident it has technical edge
Semirara executives argue the company remains best positioned to retain the contract, citing decades of operating experience, existing infrastructure, and the technical complexity of its mines that would be difficult for new entrants to replicate.
Management said a rival bidder would be “starting from zero,” facing years of equipment buildup and high operating costs before matching Semirara’s current capacity.
The pullback is already showing, with first-quarter capex down 79 percent to about P500 million as re-fleeting, or equipment replacement, tapered off and project execution slowed.
Spending this year is limited to maintenance, ICT upgrades, and operational support, with no major expansion lined up.
—Edited by Miguel R. Camus
