Semirara Mining and Power (SCC) Q4 2025 earnings summary

Executive summary

• Q4 2025 net income was PHP 3.17 billion, down 19% year-over-year, with EPS at PHP 0.74, due to lower sales volumes and softer energy prices.

• Full-year 2025 net income reached PHP 13.06 billion, a 33% decline year-over-year, mainly due to lower coal and electricity prices and higher production costs; EPS was PHP 3.07.

• Power segment contributed 54% of full-year earnings, overtaking coal's 46%.

• Record coal production of nearly 20 million metric tons and record power output achieved, maximizing Environmental Compliance Certificate limits.

• Financial position remained solid despite PHP 21.4 billion in outflows for dividends, capex, and debt service; debt reduced to PHP 1.0 billion.

Financial highlights

• Revenues declined due to lower coal and power prices, with Q4 revenues down 42% year-over-year to PHP 8.97 billion and FY revenues down 18% to PHP 52.2 billion.

• Q4 earnings more than doubled sequentially from Q3 on improved production and lower cash costs.

• Power segment contributed 54% of full-year earnings, up from 41% in Q4, due to stable contracted sales.

• Return on equity for 2025 was 23%, down from 33% in 2024.

• Special dividends of PHP 5.3 billion paid in November, bringing total 2025 payout to PHP 13.8 billion.

Outlook and guidance

• 2026 coal shipments targeted at 15.5–16 million metric tons, with 54% domestic and 46% export mix.

• Power segment aims for 88% target availability and increased contracted capacity.

• 2026 capex expected to decline 68% to PHP 1.9 billion, focusing on ICT and plant maintenance.

• Focus on preparing for the Coal Operating Contract bid round, with application submission by April 28, 2026.

• Risks include mine water seepages, coal quality, policy shifts, and plant outages.