CONSUNJI-LED Semirara Mining and Power Corp. (SMPC) has earmarked P4 billion for its capital expenditure (capex) program this year, with the bulk going to the purchase of equipment.
In a regulatory filing on Monday, the listed integrated energy company said P2.9 billion is allocated for the acquisition of mining and support equipment for its coal business, while the remaining P1.1 billion will be divided for the preventive and maintenance plans of Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp.
Maria Cristina C. Gotianun, SMPC president and chief operating officer, said the company is planning to recover this year as its coal and power businesses last year were hit by market weakness as a result of the coronavirus disease 2019 (COVID-19) pandemic.
“However, the magnitude of our recovery will largely depend on how demand and prices will behave following the vaccination rollout, COVID-19 infection rates and loosening of quarantine restrictions,” Ms. Gotianun was quoted as saying.
For 2021, SMPC is aiming to produce 13 million metric tons (MT) of coal, which is almost equivalent to the company’s production last year when it had remedial measures in its North Block 7 in Molave Mine, Antique.
In December last year, the company voluntarily deferred its mining activities in the area to allow mining personnel and technical consultants to control water build-up in the sump of North Block 7.
For 2020, SMPC posted a consolidated after-tax net income of P3.29 billion, a drop of 66% as a result of lower revenues. Its total revenues last year fell 36.2% year on year to P23.3 billion.
Due to deferred mining operations, the company’s coal production last year fell 13.2% to 13.2 million MT against 15.2 million MT in 2019.
On Monday, shares of SMPC at the stock exchange fell 4.32% or 54 centavos to finish at P11.96 per share. — Revin Mikhael D. Ochave