The government has collected approximately PHP1.7 billion in royalty payments from integrated energy firm Semirara…
A coal mining company pays the government P16 billion in royalties.
Isidro Consunji, chairman of Semirara Mining and Power Corp. (SMPC), reported that the listed company’s payment of royalties to the government in 2022 increased by 151 percent to close to PHP16 billion.
Consunji stated during SMPC’s virtual annual stockholders’ meeting on Tuesday that the company’s 2022 remittance to the government and host communities was its largest in the previous 25 years.
In 2021, the SMPC paid the government royalties totaling PHP5.9 billion.
The government share increased by 151 percent to around PHP16 billion as a result of the business’s record-high coal revenues, Consunji said. This is the greatest amount of money the company has ever given to the national government and its host towns.
In contrast to PHP52.4 billion in 2021, SMPC’s consolidated sales climbed by 74% to PHP91.1 billion last year, according to his report. Net income also increased by 146% to PHP39.9 billion from PHP16.2 billion over the same time.
In addition, the company’s operating cash flow nearly doubled to PHP40.8 billion in 2022 from PHP21.3 billion in 2021, which was also a record-high for SMPC in the previous 25 years.
Consunji further stated that from 800,000 metric tons in 1997, SMPC’s coal production increased by a factor of 19 to 16 million tons last year, the maximum amount permitted by its environmental compliance certificate.
He noted that domestic coal sales by SMPC, which make up 20% of the country’s energy mix, have fuelled 4,000 megawatts of power plants.
Consunji declared, “I am proud of our organization’s transformation, but even more so of our significant contribution to national energy security and poverty eradication.”
Maria Cristina Gotianun, president of SMPC, noted that despite a 55% fall in coal imports from China, the company’s coal sales only fell by 3% in 2017.
We changed the focus of our marketing efforts to target regional coal consumers in order to lessen our reliance on China, she added.
According to Gotianun, supply and demand imbalances in the world energy market were to blame for the double-digit increase in coal and power average selling prices last year.
Gains in foreign exchange were also realized from SMPC’s coal exports and Japanese imports due to the strengthening of the US dollar against the Philippine peso and Japanese yen.
Consunji revealed that SMPC intended to look for mining potential outside of Semirara Island.
The business is also willing to enter the liquefied natural gas (LNG) market.
“In addition to coal, the Calaca site is perfect for LNG. Therefore, the question really concerns the viability of the business, but fundamentally and technically, there is no reason why SMPC shouldn’t switch to LNG, he continued.
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