MANILA, Philippines — October 31, 2026
Consunji-led Semirara Mining and Power Corporation (SMPC) has delivered a sharp rebound in third-quarter earnings, reporting a 66% increase in net income to ₱2.4 billion as soaring electricity prices and stronger power generation offset losses from its coal mining business.
But beneath the impressive profit growth lies a major challenge.
The company’s traditional coal operations slipped into the red as production declined, shipments plunged and operating costs increased.
Meanwhile, its electricity generation business emerged as the dominant source of profitability, benefiting from a tight Philippine power market where wholesale electricity prices have risen sharply.
According to SMPC’s October 30 disclosure to the Philippine Stock Exchange (PSE), consolidated third-quarter net income climbed from approximately ₱1.5 billion a year earlier to ₱2.4 billion.
The power segment contributed ₱2.6 billion in earnings, roughly double the ₱1.3 billion recorded in the corresponding quarter of 2025.
In contrast, coal operations recorded a ₱110-million net loss.
For the first nine months of 2026, SMPC’s consolidated profit increased 11% to ₱11 billion, with electricity generation accounting for 78% of earnings.
The developments were also reported by Bilyonaryo, InsiderPH and energy industry publication Power Philippines.
The results highlight how Semirara’s business is changing as the company confronts operational difficulties at its mines and uncertainty surrounding the future of its coal operating contract in Antique.
The bigger question is whether the company’s growing power earnings can sustain its financial momentum—or whether weakening coal production and a looming contract decision could become a serious threat to future profits.
Semirara’s Power Business Becomes Its Biggest Earnings Driver
SMPC’s power generation operations were the main reason its consolidated profit improved during the third quarter.
The segment generated ₱2.6 billion in earnings, compared with ₱1.3 billion a year earlier.
Total electricity sales increased 5%, from 1,327 gigawatt-hours (GWh) to 1,388 GWh.
The average selling price rose even more sharply.
SMPC received an average of ₱5.27 per kilowatt-hour during the quarter, compared with ₱4.17 a year earlier.
That represents a 26% increase.
The company attributed the improvement to higher spot market electricity prices and stronger plant performance.
The combination of increased sales volume and significantly better prices helped offset weakness in its coal mining division.
But the earnings improvement also raises an important issue for the wider Philippine energy market: the company benefited financially from conditions that made wholesale electricity more expensive.
Wholesale Electricity Prices Jump 85%
One of the most significant figures in Semirara’s disclosure was the increase in electricity spot prices.
According to the company, average spot prices across Luzon and the Visayas rose 85% to ₱6.50 per kilowatt-hour, compared with ₱3.51 a year earlier.
SMPC identified several factors behind the increase, including stronger electricity demand, elevated fuel costs and transmission congestion affecting the Visayas grid.
These conditions can create higher revenues for generators selling electricity through the Wholesale Electricity Spot Market (WESM).
During the third quarter, approximately 46% of SMPC’s electricity sales were made through the spot market.
The remaining 54% were sold under bilateral contracts.
This balance gave Semirara significant exposure to changing wholesale power prices.
When spot prices increased, its generation business was positioned to capture part of that improvement.
However, the relationship between wholesale electricity prices and household power bills is more complicated.
Retail bills can also include contracted generation costs, transmission charges, distribution charges, taxes and other adjustments.
A rise in WESM prices therefore does not necessarily produce an identical increase in every consumer’s electricity bill.
Visayas Electricity Crisis Highlights the Other Side of the Story
While higher wholesale electricity prices strengthened SMPC’s generation earnings, consumers in some parts of the Philippines have faced severe cost pressures.
The Visayas and Mindanao have experienced periods of tight electricity supply and elevated market prices.
WWC ONE MEDIA previously examined these issues in Visayas–Mindanao Power Shortage Faces Senate Probe as Electricity Rates Surge.
That report detailed concerns raised by Senate President Sherwin Gatchalian over significant differences in wholesale electricity prices across the country’s major grids.
The issue illustrates the tension between electricity generation profitability and energy affordability.
Power companies need sufficient revenue to operate and maintain generating facilities.
Consumers, meanwhile, depend on reliable electricity at prices they can afford.
For policymakers, the challenge is ensuring that the energy market encourages adequate power supply without allowing prolonged shortages or structural constraints to impose unnecessary costs on households and businesses.
Semirara Has 400 MW Available for Spot Market Sales
As of September 30, SMPC reported total dependable generating capacity of 860 megawatts.
Approximately 45% of that capacity was covered by bilateral contract arrangements.
After accounting for internal power requirements, the company had 400 MW available for spot market dispatch.
That position provides opportunities when wholesale prices are favorable.
But spot market exposure also creates earnings volatility.
If electricity prices fall, the revenue generated by uncontracted capacity may decline.
The profitability of individual generating units will also depend on fuel expenses, operating costs, plant availability and maintenance requirements.
For investors, the key question is whether SMPC’s current power earnings represent a sustainable operating improvement or a period of unusually favorable market prices.
Both factors may have contributed to the latest performance.
Coal Operations Post ₱110-Million Loss
Semirara’s coal mining business faced a very different quarter.
The segment recorded a ₱110-million net loss, reflecting lower coal shipments and increased production costs, including fuel.
Coal production declined 5%, from 3.8 million metric tons to 3.6 million metric tons.
Shipments fell even more sharply, dropping 25% to 2.7 million metric tons from 3.6 million metric tons.
The company attributed weaker output to limited production at the Acacia mine and the approaching depletion of the Narra mine.
These difficulties are particularly important because Semirara has historically been one of the Philippines’ most significant domestic coal producers.
A sustained decline in production could weaken the company’s ability to generate cash from mining activities.
It may also create operational and investment challenges as management evaluates future mining areas.
Higher Coal Prices Fail to Prevent Mining Losses
Coal prices actually improved during the quarter.
SMPC’s average realized coal selling price increased 22% to ₱2,749 per metric ton, compared with ₱2,249 a year earlier.
Meanwhile, the Indonesian Coal Index 4 benchmark increased 62%, from $42.10 to $68.10 per metric ton.
The company attributed the international benchmark’s rise partly to Indonesian supply constraints and elevated liquefied natural gas prices associated with geopolitical tensions in the Middle East.
But Semirara did not capture the full increase in benchmark prices.
Its realized prices rose more slowly because a larger portion of its sales consisted of non-commercial-grade coal.
At the same time, declining shipments and higher production costs placed pressure on profitability.
The results demonstrate an important financial reality.
Higher commodity prices do not automatically produce stronger earnings when sales volumes fall and costs rise.
For Semirara, the combination was sufficient to push the coal segment into a quarterly loss.
A 25% Drop in Coal Shipments Raises Supply Questions
The reduction in coal shipments is particularly relevant to domestic energy security.
According to SMPC, Philippine power plants, cement manufacturers and industrial customers accounted for approximately 85% of its third-quarter coal sales.
That means the company’s mining operations remain closely connected to domestic industrial activity.
However, a decline in SMPC’s shipments should not automatically be interpreted as an equivalent decline in the country’s total coal supply.
The Philippines also imports coal, while power producers can have different fuel supply contracts and inventory arrangements.
Nevertheless, Semirara’s operating difficulties have already attracted public scrutiny.
WWC ONE MEDIA previously reported on these concerns in Semirara Coal Output Falls 55% as NASECORE Warns of Higher Electricity Bills — But the Real Test Comes in July 2027.
That article examined a warning from the National Association of Electricity Consumers for Reforms over weaker mining production and possible consequences for domestic energy costs.
The earlier 55% decline concerned the second quarter of 2026, while the latest 5% production decline concerns the third quarter. The two figures describe different periods and should not be confused.
Semirara’s July 2027 Coal Contract Expiration Looms
Beyond quarterly earnings, SMPC faces a major regulatory challenge.
Its existing coal operating contract covering Semirara Island in Antique is scheduled to expire in July 2027.
The Department of Energy has been preparing a competitive bidding process to determine the future development and operation of coal resources.
But the process has encountered disputes involving auction rules, operating assets, eligibility conditions and government revenue expectations.
In September, the DOE terminated its initial 2026 coal bidding round to reassess the evaluation framework.
WWC ONE MEDIA examined the implications in DOE Pulls the Plug on 2026 Coal Auction as Philippines Reworks Terms for Semirara.
The government has indicated that revised bidding requirements should deliver greater economic value while protecting domestic supply and energy security.
For SMPC, the uncertainty comes at a time when its coal business is already facing lower production volumes and higher costs.
However, the expiration of the present contract does not automatically mean mining operations will stop on that date.
Future operating arrangements will depend on government decisions, applicable law and the outcome of the contracting process.
Will Semirara Keep Control of Its Coal Operations?
SMPC has argued that future bidders should demonstrate the technical expertise and financial capacity necessary to operate a complex mining project.
The company has also raised concerns about provisions affecting equipment and other assets used in its operations.
Consumer advocates and government officials have emphasized the importance of competitive bidding and measurable benefits to the Philippine public.
WWC ONE MEDIA covered these competing positions in Semirara Coal Contract Faces High-Stakes Bidding Battle as DOE Pushes Consumer Protections — But Will Electricity Bills Really Go Down?.
The debate matters because Semirara represents a substantial domestic energy asset.
Government officials must consider operating continuity, environmental safeguards, public revenues and competition.
Any successful bidder would also need the equipment, expertise and financial resources required to manage the mine.
At this stage, the eventual contract award cannot be treated as settled.
Workforce Reductions Add Another Challenge
Semirara’s operational adjustments have also affected employment planning.
Separate October 30 reporting indicates that SMPC’s board approved a further reduction of excess mine-site positions as it seeks to align staffing with changing operating requirements.
The company has said the changes should not compromise essential coal extraction activities, environmental rehabilitation or contractual compliance.
The number of additional positions affected was not specified in the available disclosure summary.
For communities connected to mining operations, employment decisions can be as important as production and profitability figures.
Reduced activity may affect workers, suppliers and local businesses.
But the long-term effects will depend on how the company manages staffing adjustments, future production plans and its obligations to affected personnel.
What the Results Mean for the Consunji Group
SMPC is part of the broader Consunji business group, whose interests include construction, property development, infrastructure, utilities and mining.
The company’s profitability therefore carries importance beyond the coal and power sectors.
WWC ONE MEDIA recently examined the group’s broader performance in DMCI Group Bags 7 Golden Arrows as First-Half Profit Rises 26% — But Can the Consunji-Led Conglomerate Sustain Its Governance Record?.
That report discussed the group’s corporate governance recognition and the contribution of Semirara’s operations to overall earnings.
The latest results reinforce the importance of evaluating individual business segments rather than relying solely on headline consolidated profit.
A company can report strong net income growth even while one of its major operating divisions is deteriorating.
For SMPC, stronger power earnings have helped counterbalance weakness in mining.
Whether that pattern can continue remains an important question for investors.
Can Higher Power Earnings Continue Into 2027?
The outlook for SMPC’s electricity generation business will depend on market conditions.
If electricity demand remains strong while available generating capacity is constrained, wholesale prices could remain elevated.
That could benefit generators with available spot market capacity.
But improvements in grid conditions, additional supply or lower fuel costs could put downward pressure on electricity prices.
Changes in plant performance and maintenance schedules could also affect electricity sales.
Higher contracted capacity could provide greater revenue stability but may reduce exposure to exceptionally favorable spot prices.
These factors will determine whether the power business can repeat its strong third-quarter performance.
For now, the company’s reported figures demonstrate that electricity generation is increasingly central to its earnings.
They do not guarantee that the same rate of profit growth will continue.
What Investors Should Watch Next
Semirara’s latest financial results provide several important areas for monitoring.
The first is coal production.
Investors will want to know whether conditions at Acacia and Narra continue limiting output.
The second is coal shipment volume.
A recovery in deliveries could improve revenue, provided selling prices and production costs remain favorable.
The third is electricity pricing.
SMPC’s power segment benefited significantly from rising spot market rates, and changes in those prices could influence future profitability.
The fourth is the July 2027 coal operating contract.
The outcome of the DOE’s bidding process may influence Semirara’s long-term mining activities, capital investment requirements and business structure.
Finally, investors should monitor operating cash flow, capital expenditure and any workforce restructuring costs.
These indicators will help determine whether the company’s improved accounting profit is translating into durable financial strength.
The Bigger Question: Is Semirara Becoming a Power Company First?
For years, Semirara has been associated primarily with coal mining.
Its integrated operations have allowed it to supply fuel to its own generating facilities while selling coal to domestic and international customers.
But the latest financial figures suggest a significant shift in its earnings profile.
The power segment contributed 78% of consolidated earnings during the first nine months of 2026.
In the third quarter, power earnings exceeded consolidated profit because of weakness in coal and consolidation effects.
That does not mean mining has ceased to be strategically important.
Coal remains central to the company’s production system and fuel supply.
But the earnings mix shows how the financial performance of an integrated energy business can change as operating conditions evolve.
The challenge is that SMPC’s two divisions face different risks.
Power generation is exposed to electricity prices, plant availability and fuel costs.
Coal mining faces geological constraints, production expenses, commodity prices and regulatory uncertainty.
Managing those risks simultaneously will determine whether the company’s recent profitability can be sustained.
The Bottom Line
Semirara Mining and Power Corporation reported a 66% increase in third-quarter 2026 net income to ₱2.4 billion, supported by stronger electricity sales and higher wholesale power prices.
Its power segment generated ₱2.6 billion in quarterly earnings, roughly twice the year-earlier figure.
But coal operations suffered a ₱110-million loss as production fell 5%, shipments declined 25% and operating costs remained elevated.
For the first nine months of the year, consolidated net income reached ₱11 billion, with power generation accounting for 78% of earnings.
The results demonstrate that SMPC’s electricity business is providing substantial financial support while its coal operations face mounting challenges.
Those challenges include declining output at key mining areas, workforce adjustments and uncertainty surrounding the coal contract scheduled to expire in July 2027.
As Semirara celebrates a powerful earnings rebound, one question now hangs over the Consunji-led energy giant: Can soaring electricity profits sustain its growth—or will the weakening coal business and approaching 2027 contract decision put its hard-won recovery at risk?
