Semirara Mining and Power (SCC) Q1 2025 earnings summary

Executive summary

• Net income for Q1 2025 declined 33% year-over-year to PHP 4.35 billion, mainly due to lower coal prices, partially offset by improved power segment performance.

• Earnings per share dropped to PHP 1.02 from PHP 1.54 in Q1 2024.

• Coal contributed 56% of group earnings, down from 65% last year, while power's share rose to 46%.

• Group earnings rose 11% sequentially from Q4 2024, driven by improved power segment performance.

• Maintained a strong cash position (PHP 10.5–11.5 billion), enabling an PHP 8.5 billion dividend payout, representing 43% of prior year net income.

Financial highlights

• Consolidated revenues fell 10–11% year-over-year to PHP 16.5 billion, mainly due to lower coal prices and shipments.

• Core EBITDA margin narrowed to 41%; net margin at 26%, both down from prior year.

• Total debt reduced by 19–22% to PHP 2.05–2.1 billion; net cash position of PHP 8.4 billion.

• Book value per share decreased to PHP 12.32 due to dividend declaration.

• Dividend payout of PHP 8.5 billion in April 2025.

Outlook and guidance

• Coal prices expected to stabilize near US$106.6 (NEWC) and US$48.1 (ICI4), supported by demand from Vietnam.

• CapEx guidance for 2025 is PHP 6.9 billion, with 50%-60% to be spent in H1 and 84% allocated to coal segment.

• Focus on production efficiency at Narra mine, exploration at Acacia mine, and export diversification.

• Power segment to reinforce contracting strategies and enhance fuel efficiency.

• Monitoring global demand trends, policy shifts, and economic slowdown risks.