The stock fell as much as 23.5 percent to P25.40 from P33.20 the previous session, erasing almost P36 billion in market value. The company pared losses later in the session but it’s still trading lower by nearly 18 percent to P27.25 on Monday morning as investors reacted to the news for the first time.
Shares of parent firm DMCI Holdings also fell as much as 18 percent to P8.79 each. It’s currently trading at P9.49, down nearly 12 percent.
The Department of Justice ruled that the company’s 50-year coal operating contract cannot be extended beyond July 2027, removing automatic continuation rights over the island’s mining operations, the Philippine Daily Inquirer reported.
Energy Secretary Sharon Garin said the contract would instead be opened to competitive bidding within the year, citing constitutional limits on renewing the agreement.
SCC has yet to issue a statement on the issue, introduces uncertainty over its future control of its core mining asset.
Semirara Island in the province of Antique supplies the bulk of the company’s coal production and supports its integrated power generation business, making the contract central to its long-term earnings visibility.
—Edited by Miguel R. Camus
