Semirara Mining and Power (SCC) Q3 2024 earnings summary

Executive summary

• Q3 and 9M 2024 earnings declined due to stabilizing energy markets and lower coal and electricity prices, but results remain above pre-pandemic and pre-global energy crisis levels.

• Power segment contributed 63% of Q3 earnings, offsetting weaker coal margins, while higher shipments and power sales partially mitigated the impact of lower average selling prices.

• Net income for Jan–Sep 2024 was P15.71B, down 31% year-over-year, with Q3 net income at P3.12B and EPS at P0.73.

• Special dividends declared in October brought 2024 payout to Php 25.5 bn, the second-highest in company history.

• Return on equity remained robust at 25% for the nine-month period.

Financial highlights

• Q3 net income and EPS fell 8% year-over-year to Php 3.12 bn and Php 0.73/share; 9M net income and EPS dropped 31% to Php 15.71 bn and Php 3.70/share.

• Q3 revenues rose 12% year-over-year to Php 13.08 bn, driven by higher coal and power sales; 9M revenues declined 12% to Php 49.67 bn due to lower ASP.

• Cost of sales increased 13% to P25.2B, driven by higher coal production costs and sales volume.

• 9M group core EBITDA at Php 21.57 bn, down 23% year-over-year, with margin narrowing from 50% to 43%.

• Net income margin narrowed from 40% to 32% year-over-year.

Outlook and guidance

• Energy markets expected to further stabilize into 2025; focus on marketing, operational efficiencies, and risk diversification to sustain production and sales.

• Coal segment targets 16 MMT shipments for 2024 and 15.5–16 MMT for 2025, with strip ratios of 12.3 and 13.6, respectively.

• Power spot prices projected to stabilize around P4.19/kWh for the rest of 2024 and consolidate near P4.14/kWh in 2025.

• 2024 capex budget revised upward to P6.6B (+65% year-over-year), with 73% allocated to coal segment; 2025 capex expected to rise 5% to P6.9B.

• Power segment aims to increase contracted capacity and maintain high plant availability, with planned and unplanned outages scheduled for 2024–2025.