Semirara Mining & Power Corp. · PSE:SCC
Semirara Mining & Power — Q2 2024 Earnings Presentation
48 slides from Semirara Mining & Power's earnings presentation, Aug 2, 2024
Slide 1: Q2/H1 2024 Analysts' Briefing
Q2/H1 2024 Analysts’ Briefing 02 August 2024 Makati City via remote communication
Slide 2: Q2 2024 Group Highlights: Robust margins amid waning market prices
Q2 2024 GROUP HIGHLIGHTS Robust margins amid waning market prices § Net income and EPS fell 41% to § Coal contributions plunge 54% to § Power contributions down 12% to Php 6.05 bn and Php 1.42/share, Php 3.14 bn on weaker selling prices, Php 2.91 bn due to less eliminating respectively, owing to nor
Slide 3: H1 2024 Group Highlights: Better operating performance lifts financial results
H1 2024 GROUP HIGHLIGHTS Better operating performance lifts financial results § Net income and EPS drop 34% to § Coal contributions sink 39% to § Power contributions shrinks 26% to Php 12.59 bn and Php 2.96/share; Php 7.40 bn amid stabilizing selling Php 5.20 bn on lower ASP, better return on equity
Slide 4: Coal Market Snapshot
COAL MARKET SNAPSHOT Indices seen to further stabilize on anemic Asian demand 500 450 Weather- Indonesia Forecast High China induced supply Export Winter Ave. Q3 2024 400 and Europe disruption in Ban NEWC: US$136.8 stockpiles stocking and Indonesia 350 China increased New Russian ICI4: US$51.0 Globa
Slide 5: Power Market Snapshot
POWER MARKET SNAPSHOT Steady market seen for the rest of 2024 Forecast Ave. Q3 2024 Php 4.93 Malampaya outage La Niña season NEWC peak: $433.9 Reintegration and additional capacity Peak Malampaya Peak Luzon Heat Brent peak: $121.6 of major baseload plants and unified Luzon Heat 16,000 outage Index:
Slide 6: Group Earnings Breakdown and Review
GROUP EARNINGS BREAKDOWN AND REVIEW Earnings down YoY but better than pre-COVID, energy crisis onset In PHP mn Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change Key Takeaways Coal 3,139 6,893 -54% 7,395 12,167 -39% ● Q2 earnings down YoY, QoQ on lower coal contributions; SCPC 1,570 2,264 -31% 2,875 5,37
Slide 7: Group Income Statement Highlights
GROUP INCOME STATEMENT HIGHLIGHTS Revenues fall despite volume uptick due to lower prices In PHP mn Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change Key Takeaways Revenues 18,168 23,865 -24% 36,594 44,573 -18% ● Revenues contracted on double-digit declines in Cash Cost* 9,741 11,459 -15% 19,777 20,947
Slide 8: Coal Standalone Financial Highlights
COAL STANDALONE FINANCIAL HIGHLIGHTS In PHP mn Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change Key Takeaways Revenues 12,812 18,822 -32% 27,112 34,314 -21% ● Revenues down on weaker selling prices COS – Cash Cost 6,039 6,445 -6% 12,077 10,546 15% ● Q2 COS – Cash Cost and D&A fell as increased mine Gov
Slide 9: Coal Operating Highlights
COAL OPERATING HIGHLIGHTS Q2 Q2 Key Takeaways Change 2024 2023 ● Lower S/R and production surge on the back of lower rainfall Strip Ratio (S/R) levels (640.7 mm vs 817.6 mm in 2023) and near-depletion of Aggregate* 11.4 17.7 -35% Molave mine last year, which created a low base effect Effective** 11.
Slide 10: SCPC Standalone Financial Highlights
SCPC STANDALONE FINANCIAL HIGHLIGHTS In PHP mn Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change Key Takeaways Revenues 3,975 4,499 -12% 7,431 10,058 -26% ● Topline weakness due to softer selling prices, Cash Cost* 2,107 2,198 -4% 4,190 5,087 -18% cushioned by improved average capacity Core EBITDA 1,868
Slide 11: SCPC Operating Highlights
SCPC OPERATING HIGHLIGHTS Q2 2024 Q2 2023 Change Key Takeaways Plant Availability (in %) 71% 84% -15% ● Lower plant availability due to more outage days (from 29 to 53), Unit 1 100% 87% 15% following Unit 2’s 77-day planned outage (from March 6) to restore Unit 2 42% 82% -49% dependable capacity to
Slide 12: SLPGC Standalone Financial Highlights
SLPGC STANDALONE FINANCIAL HIGHLIGHTS In PHP mn Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change Key Takeaways Revenues 2,889 2,325 24% 5,160 4,421 17% ● Double-digit topline growths on improved plant Cash Cost* 1,087 1,080 1% 2,181 2,388 -9% performance, tempered by lower selling prices Core EBITDA 1,
Slide 13: SLPGC Operating Highlights
SLPGC OPERATING HIGHLIGHTS Q2 2024 Q2 2023 Change Key Takeaways Plant Availability (in %) 91% 75% 21% ● Notable improvement in overall plant performance because of Unit 1 100% 50% 100% lower outage days (from 45 to 16) and fewer intermittent deration of Unit 2 83% 100% -17% Unit 1 (from 137MW to 149
Slide 14: Outlook: Energy market to hold steady over the short term
OUTLOOK Energy market to hold steady over the short term DRIVERS § Asian markets restocking § Strong demand forecast § Domestic industrial requirements § Strategic supply contracting § Mine site production efficiency § Efficient fuel management RISKS § Water seepages § Policy interventions § Coal qu
Slide 15: Key Takeaways
Key Takeaways ● Q2 earnings declined YoY and QoQ due to lower coal contributions; H1 net income fell YoY but was double pre-pandemic and global energy crisis levels. ● Best-ever H1 coal production and shipments cushioned the impact of cooling coal prices ● All-time high total power generation amid n
Slide 16: Annex
Annex • Coal Segment Updates • Power Segment Updates • ESG Updates • Market Outlook • Consolidated Capex • Debt Profile • Power Segment Highlights • 2024 Plant Outages Summary • Statements of Income and Financial Position 16
Slide 17: 2024 Coal Segment Guidance
2024 Coal Segment Guidance Rainfall Levels Shipments* Pricing Target Mix Heavier rainfall expected in Q3 Spot Indexed and Fixed 800 Domestic 600 55% 15 to 16 in mm 45% 55% 400 200 MMT 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Exports 45% 2023 2024A 2024F Production and Exploration* H1 2024 I
Slide 18: 2024 Power Segment Guidance
2024 Power Segment Guidance Potential Supply Target Additional Contracted Upcoming Planned Outages Contracts Capacity 103.6 MW 170 MW SCPC 171.0 72.0 243.0 486.0 28 July (ongoing) SLPGC Unit 1 40 days 20 October SCPC Unit 1 20 days 1 December SLPGC Unit 2 50 days Under Negotiation SLPGC 103.4 31.6 1
Slide 19: Climate - Nature Stewardship
Climate - Nature Stewardship PROTECTION AND RESTORATION TERRESTRIAL BIODIVERSITY AND HABITATS Birds Protected 16** 19** 69*** BIRDS IN BIRDS IN ENDEMIC PHILIPPINE ENDANGERED VULNERABLE BOX TURTLE IN STATUS STATUS ENDANGERED STATUS *All figures as of June 2024 1,173 ha 2.15 M **Based on DAO 2019-09 T
Slide 20: Climate - Nature Stewardship
Climate - Nature Stewardship PROTECTION AND RESTORATION MARINE BIODIVERSITY AND HABITATS 1,666 ha 435 190,314 HABITATS PROTECTED ANIMALS MANAGED GIANT CLAMS AND RESTORED AND CARED FOR PROPAGATED 500 2,100 85 SEAGRASS CORALS REEF BALLS TRANSPLANTED TRANSPLANTED DEPLOYED *All figures as of June 2024 2
Slide 21: Social Inclusion
Social Inclusion REDUCING POVERTY EMPLOYMENT AND LIVELIHOOD 4,673 364 1,383 53 53 67 DIRECT FEMALE DIRECT INDIRECT AVERAGE TRAINING AVERAGE AVERAGE EMPLOYEES EMPLOYEES EMPLOYEES HOURS (PER EMPLOYEE) TRAINING HOURS TRAINING HOURS (MALE) (FEMALE) 0.07 0.06 31 LTIFR LTIFR EMPLOYEES CONTRACTORS NEW SUPP
Slide 22: Social Inclusion
Social Inclusion REDUCING POVERTY EMPLOYMENT AND LIVELIHOOD 1,663 103 532 Employees from Host Tenants in Semirara Registered MSMEs Communities Food Court and in Semirara Island Market *All figures as of June 2024 22 UPDATES • OUTLOOK • CAPEX • DEBT PROFILE • OPERATING HIGHLIGHTS • FINANCIALS 22
Slide 23: Social Inclusion
Social Inclusion BROADER ACCESS EDUCATION AND WELLNESS 55 1,659 4 SCHOLARSHIPS STCI GRADUATES CLASSROOMS GRANTED FROM 2006 TO 2024 BUILT 4,531 88 DWSSII GRADUATES ALTERNATIVE LEARNING SINCE 2003 SYSTEM ENROLLEES FROM 2021 TO 2024 *All figures as of June 2024 23 UPDATES • OUTLOOK • CAPEX • DEBT PROFI
Slide 24: Social Inclusion
Social Inclusion BROADER ACCESS EDUCATION AND WELLNESS 15 207K 11.3K INFIRMARY BEDS PATIENTS SERVED BY ORGANIC CROPS COMPANY INFIRMARY PRODUCED SINCE 2016 (IN KG) *All figures as of June 2024 24 UPDATES • OUTLOOK • CAPEX • DEBT PROFILE • OPERATING HIGHLIGHTS • FINANCIALS 24
Slide 25: Social Inclusion
Social Inclusion SUSTAINABLE PARTNERSHIPS PEOPLE GROUPS 2 15.3K UNIFORMS PURCHASED FROM LOCAL WOMEN’S SEMIRARA WOMEN’S ORGANIZATIONS ORGANIZATION SINCE 2021 SUPPORTED 160 12 TOTAL LOCAL SEAWEED LOCAL COMMUNITY FARMERS SUPPORTED PARTNERSHIPS FORGED *All figures as of June 2024 25 UPDATES • OUTLOOK •
Slide 26: Social Inclusion
Social Inclusion STRONGER CONNECTIONS INFRASTRUCTURE AND TRANSPORTATION 51 km 163K 7.9K DAILY ROADS BUILT AND PASSENGERS PASSENGERS MAINTAINED TRANSPORTED BY MV OF FREE SHUTTLE MA. CRISTINA SINCE SYSTEM 2016 *All figures as of June 2024 26 UPDATES • OUTLOOK • CAPEX • DEBT PROFILE • OPERATING HIGHLIG
Slide 27: Awards & Recognition
Awards & Recognition SMPC clinches four awards in prestigious SEA investor poll SMPC has been recognized as a top performer in the 14th Institutional Investor Corporate Awards 2024, presented by Hong Kong-based Alpha Southeast Asia magazine. Based on the poll, SMPC emerged as one of the eight best-m
Slide 28: Awards & Recognition
Awards & Recognition SMPC receives Philippines Best Employer Brand Award SMPC was recognized at the 19th Employer Branding Awards, receiving the Philippines Best Employer Brand Award and the HR Innovator of the Year award for Lora Liza Dioquino, the company's Assistant Vice President for Human Resou
Slide 29: ESG News & Updates: Climate - Nature Stewardship
ESG News & Updates: Climate - Nature Stewardship 30 reef balls deployed in Semirara Island As part of SMPC's ongoing reef restoration initiatives, 30 reef balls were successfully installed last June 3 and 4, 2024, around the waters of Tabunan, Semirara Island, where its Semirara Marine Hatchery Labo
Slide 30: ESG News & Updates: Climate - Nature Stewardship
ESG News & Updates: Climate - Nature Stewardship SMPC concludes Environment Month with tree planting activity SMPC concluded its Environment Month celebration by planting 80 fruit- bearing trees at the rehabilitated South Panian in Semirara Island, Caluya, Antique last June 29, 2024. 134 employee vo
Slide 31: ESG News & Updates: Social Inclusion
ESG News & Updates: Social Inclusion 260 residents receive free healthcare services in SMPC's Q2 medical mission In partnership with the Barangay Tinogboc LGU and the teaching staff of Sabang II Elementary School, SMPC's quarterly medical mission held on June 4, 2024, provided 260 locals with free m
Slide 32: ESG News & Updates: Social Inclusion
ESG News & Updates: Social Inclusion 10 Alegria residents get free computer literacy training To support local capacity-building initiatives, SMPC in partnership with BLGU Alegria, offered free computer literacy training to 10 locals on May 4, 2024, held at the DWSSII Computer Laboratory in Semirara
Slide 33: Market Outlook
Market Outlook Newcastle Prices (in USD/MT) Indonesian Coal Index 4 (in USD/MT) WESM Spot Prices (in Php/KWh) 421 8.41 377 379 89 90 8.02 82 82 7.32 77 6.54 264 6.58 6.23 65 6.91 248 59 161 148 5.07 136 57 52 4.83 55 53 135.6 136.8 139.3 51 4.93 125.8 4.61 4.38 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 No
Slide 34: Consolidated Capex
Consolidated Capex In PHP bn Q2 Q2 Change H1 H1 Change Key Takeaways 2024 2023 2024 2023 Coal 1.1 1.0 10% 2.2 1.6 38% ● Total H1 capex surged on low-base effect, as spending concentrated in H2 2023; spending for SLPGC Unit 1’s Q3 SCPC 0.3 0.2 50% 0.8 0.3 167% planned maintenance commenced in Q1 SLPG
Slide 35: Debt Profile
Debt Profile In Php bn Loans and Cash Position Loan Maturity Schedule 49% 4.6 June 2024 68% 21% 11% Total Loans 9.1 June 2023 41% 49% 10% 49% 13.9 <1 year 1 to 2 years 2 to 4 ye ars Cash and cash equivalents 27.5 *rounding may cause total not to match the sum of parts 49% 9.3 Floating and Fixed Net
Slide 36: Coal Operating Highlights (H1)
COAL OPERATING HIGHLIGHTS H1 H1 Key Takeaways Change 2024 2023 ● Higher S/R largely due to the consolidation of operations to a Strip Ratio (S/R) single mine (Narra) in Q1, stripping activities in six blocks and low- Aggregate* 11.9 11.5 4% base effect from near-depletion of Molave mine last year Ef
Slide 37: SCPC Operating Highlights (H1)
SCPC OPERATING HIGHLIGHTS H1 2024 H1 2023 Change Key Takeaways Plant Availability (in %) 79% 92% -14% ● Plant availability declined owing to increased outage days (from 29 Unit 1 100% 93% 8% to 78), cushioned by Unit 1’s continuous running days Unit 2 57% 90% -37% ● Average capacity grew on the back
Slide 38: SLPGC Operating Highlights (H1)
SLPGC OPERATING HIGHLIGHTS H1 2024 H1 2023 Change Key Takeaways Plant Availability (in %) 94% 73% 29% ● All key operating metrics improved because of reduced outage Unit 1 98% 69% 42% days (from 95 to 21) and less intermittent deration of Unit 1 Unit 2 91% 78% 17% (from 131MW to 146MW) Average Capac
Slide 39: Overall Power Segment Operating Results
Overall Power Segment Operating Results Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change Plant Availability (in %) 81% 80% 1% 86% 83% 4% SCPC 71% 84% -15% 79% 92% -14% SLPGC 91% 75% 21% 94% 73% 29% Average Capacity* (in MW) 801 685 17% 739 687 8% SCPC 503 399 26% 446 410 9% SLPGC 298 286 4% 293 277 6%
Slide 40: Historical Power Plant Performance
Historical Power Plant Performance SCPC SLPGC Gross Generation (in GWh) Gross Generation (in GWh) 3,123 3,192 2,022 1,892 1,698 1,554 1,349 2,067 1,387 963 1,206 1,713 1,554 1,112 337 759 999 258 581 527 1,774 1,730 1,455 1,805 1,059 1,027 795 780 699 625 2020 2021 2022 2023 H1 2024 2020 2021 2022 2
Slide 41: 2024 Plant Outages Summary
2024 Plant Outages Summary As of August 2, 2024 Unit 1 Unit 2 Unit 1 Unit 2 Actual Total • July 28 to September 5 Planned • none • March 6 to May 22 117 days (target) • July 7 to 11 • July 13 to 20 • May 23 to 24 • January 1 to 3 • March 30 to April 58 days Unplanned • July 23 to 25 • July 28 to Aug
Slide 42: Overall Power Segment Financial Results
Overall Power Segment Financial Results in Php mn Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change Revenues 6,864 6,824 1% 12,591 14,479 -13% COS (2,270) (2,523) -10% (4,576) (5,849) -22% OPEX (924) (755) 22% (1,795) (1,626) 10% Cash cost (3,194) (3,278) -3% (6,371) (7,475) -15% Core EBITDA 3,670 3,546
Slide 43: Standalone Statements of Income
Standalone Statements of Income Q2 2024 Q2 2023 In Php millions % COAL SCPC SLPGC Others Combined COAL SCPC SLPGC Others Combined Revenues 12,812 3,975 2,889 60 19,736 18,822 4,499 2,325 84 25,730 -23% COS (6,039) (1,487) (783) (54) (8,363) (6,445) (1,814) (709) (69) (9,037) -7% Govt Share (1,728) -
Slide 44: Standalone Statements of Income
Standalone Statements of Income H1 2024 H1 2023 In Php millions % COAL SCPC SLPGC Others Combined COAL SCPC SLPGC Others Combined Revenues 27,112 7,431 5,160 121 39,824 34,314 10,058 4,421 154 48,947 -19% COS (12,077) (2,956) (1,620) (105) (16,758) (10,546) (4,191) (1,658) (128) (16,523) 1% Govt Sha
Slide 45: Consolidated Statements of Income
Consolidated Statements of Income Q2 2024 Q2 2023 In Php millions % COAL SCPC SLPGC Others Conso COAL SCPC SLPGC Others Conso Revenues 11,244 3,975 2,889 60 18,168 16,957 4,499 2,325 84 23,865 -24% COS (5,223) (1,068) (598) (54) (6,943) (5,756) (1,028) (407) (69) (7,260) -4% Govt Share (1,728) - - -
Slide 46: Consolidated Statements of Income
Consolidated Statements of Income H1 2024 H1 2023 In Php millions % COAL SCPC SLPGC Others Conso COAL SCPC SLPGC Others Conso Revenues 23,882 7,431 5,160 121 36,594 29,940 10,058 4,421 154 44,573 -18% COS (10,480) (2,039) (1,190) (105) (13,814) (9,178) (2,027) (1,081) (128) (12,414) 11% Govt Share (
Slide 47: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position In Php millions SMPC SCPC SLPGC Others Jun 2024 SMPC SCPC SLPGC Others Dec 2023 % Cash and cash equivalents 8,166 2,658 2,940 172 13,936 12,131 4,511 2,125 221 18,988 -27% Receivables 5,500 3,309 2,226 30 11,065 7,333 2,135 1,256 43 10,767 3% Inventories
Slide 48: Disclaimer Contact Information
Disclaimer Neither Semirara Mining & Power Corporation (SCC) nor its advisors make any representation regarding, and assumes no responsibility or liability for, the accuracy or completeness of, or any errors or omissions in any information contained herein. Such information is subject to change with
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