Semirara Mining & Power Corp. · PSE:SCC
Semirara Mining & Power — Q3 2024 Earnings Presentation
49 slides from Semirara Mining & Power's earnings presentation, Nov 4, 2024
Slide 1: Q3/9M 2024 Analysts' Briefing
Q3/9M 2024 Analysts’ Briefing 04 November 2024 Makati City via remote communication
Slide 2: Q3 2024 Group Highlights
Q3 2024 GROUP HIGHLIGHTS Power segment strength amid softer coal margins § Net income and EPS slipped 8% § Coal contributions fell 36% to § Power contributions jumped 23% to Php 3.12 bn and Php 0.73/share, Php 1.16 bn on weaker selling prices, to Php 1.96 bn amid better plant respectively, owing to
Slide 3: 9M 2024 Group Highlights
9M 2024 GROUP HIGHLIGHTS Boosted sales buffer cooling energy markets § Net income and EPS sank 31% to § Coal contributions shrank 39% to § Power contributions contracted 17% Php 15.71 bn and Php 3.70/share; Php 8.55 bn amid on combined effect to Php 7.14 bn on lower ASP, partially return on equity a
Slide 4: Coal Market Snapshot
COAL MARKET SNAPSHOT Seasonality, economy and geopolitics to shape indices 500 Weather- Indonesia Forecast 450 High China induced supply Export Winter Ave. Q4 2024 and Europe 400 disruption in Ban stockpiles stocking and NEWC: US$144.1 Indonesia China increased New Russian ICI4: US$51.0 350 mining C
Slide 5: Power Market Snapshot
POWER MARKET SNAPSHOT Stable prices on wider supply margins, lower fuel costs Forecast: Reintegration and additional capacity Peak Luzon Q4 2024 NEWC peak: $433.9 Malampaya Peak Luzon Heat Heat Index: Php 4.19 10.00 16,000 Brent peak: $121.6 of major baseload plants and unified La Niña season outage
Slide 6: Group Earnings Breakdown and Review
GROUP EARNINGS BREAKDOWN AND REVIEW Earnings dip on coal and SCPC as ROE stays strong In PHP mn Q3 2024 Q3 2023 Change 9M 2024 9M 2023 Change Key Takeaways Coal 1,156 1,799 -36% 8,551 13,966 -39% ● Weaker coal and SCPC contributions weighed Q3 and 9M SCPC 1,530 1,577 -3% 4,405 6,954 -37% earnings, p
Slide 7: Group Income Statement Highlights
GROUP INCOME STATEMENT HIGHLIGHTS Higher coal and power sales lift Q3 topline In PHP mn Q3 2024 Q3 2023 Change 9M 2024 9M 2023 Change Key Takeaways Revenues 13,077 11,628 12% 49,671 56,201 -12% ● Q3 revenues up double-digits on increased coal Cash Cost* 8,329 7,328 14% 28,106 28,275 -1% and power sa
Slide 8: Coal Standalone Financial Highlights
COAL STANDALONE FINANCIAL HIGHLIGHTS In PHP mn Q3 2024 Q3 2023 Change 9M 2024 9M 2023 Change Key Takeaways Revenues 8,154 8,129 0% 35,266 42,443 -17% ● Flat Q3 revenues as increased shipments balanced COS – Cash Cost 4,756 4,544 5% 16,833 15,090 12% weaker selling prices; 9M revenues slid on lower A
Slide 9: Coal Operating Highlights
COAL OPERATING HIGHLIGHTS Q3 Q3 Key Takeaways Change 2024 2023 ● S/R and production improved due to more accessible seams in Strip Ratio (S/R) four Narra mine blocks, despite increased rainfall levels (606.7 mm Aggregate* 15.2 18.1 -16% vs. 516.9 mm in 2023); low-base effect from near-depletion of E
Slide 10: SCPC Standalone Financial Highlights
SCPC STANDALONE FINANCIAL HIGHLIGHTS In PHP mn Q3 2024 Q3 2023 Change 9M 2024 9M 2023 Change Key Takeaways Revenues 4,217 3,997 6% 11,648 14,055 -17% ● Q3 topline uptick on increased power sales amid flat Cash Cost* 2,356 2,196 7% 6,546 7,283 -10% ASP; 9M revenues fell on lower ASP, partially offset
Slide 11: SCPC Operating Highlights
SCPC OPERATING HIGHLIGHTS Q3 2024 Q3 2023 Change Key Takeaways Plant Availability (in %) 83% 99% -16% ● Plant availability fell on increased outage days (from 2 to 32 days) as Unit 1 79% 100% -21% both plants faced downtime largely due to boiler tube leaks Unit 2 87% 98% -11% ● Average capacity expa
Slide 12: SLPGC Standalone Financial Highlights
SLPGC STANDALONE FINANCIAL HIGHLIGHTS In PHP mn Q3 2024 Q3 2023 Change 9M 2024 9M 2023 Change Key Takeaways Revenues 1,603 1,296 24% 6,763 5,717 18% ● Q3 revenues rose sharply on improved plant Cash Cost* 1,126 1,200 -6% 3,307 3,588 -8% performance and better ASP; 9M topline tempered by 3,456 2,129
Slide 13: SLPGC Operating Highlights
SLPGC OPERATING HIGHLIGHTS Q3 2024 Q3 2023 Change Key Takeaways Plant Availability (in %) 68% 59% 15% ● All key operating metrics improved primarily due to reduced outage Unit 1 36% 33% 9% days (from 76 to 59) and fewer intermittent deration across both Unit 2 100% 85% 18% plants Average Capacity* (
Slide 14: Outlook: Leveraging on strengths in the stable energy market
OUTLOOK Leveraging on strengths in the stable energy market DRIVERS § Domestic industrial requirements § Strategic supply contracting § Demand for mid-to-low calorific coal § Efficient fuel management § Mine site production efficiency § Growing electricity demand RISKS § Water seepages § Planned, un
Slide 15: Key Takeaways
Key Takeaways ● Q3 and 9M earnings declined on stabilizing energy markets; 9M results remain above pre- pandemic and pre-global energy crisis levels. ● Higher shipments, power sales and strategic marketing efforts partially offset impact of weaker prices. ● Energy markets are expected to further sta
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 and 2025 Coal Segment Guidance
2024 and 2025 Coal Segment Guidance Shipments* Pricing Target Mix Income Tax Holiday Guidance Spot Indexed and Fixed Domestic Narra Mine 55% 16 45% 55% Extended up to May 2025 Eligible to apply for (1) more bonus year, MMT subject to BOI approval Exports 45% Production Targets Exploration 9M 2024 En
Slide 18: 2024 and 2025 Power Segment Guidance
2024 and 2025 Power Segment Guidance 2024 Potential Supply Target Additional Contracted Planned Outages 2025 Contracts Capacity 104.6 MW 15 November 2024 1 December 2024 8 June 2025 SCPC 171.0 72.0 243.0 486.0 SLPGC Unit 2 SCPC Unit 1 SLPGC Unit 1 30 days 30 days 205 MW 50 days SLPGC 102.4 32.6 135.
Slide 19: Climate - Nature Stewardship
Climate - Nature Stewardship PROTECTION AND RESTORATION TERRESTRIAL BIODIVERSITY AND HABITATS Fauna Protected 16** 19** 69*** BIRDS IN BIRDS IN ENDEMIC PHILIPPINE ENDANGERED VULNERABLE BOX TURTLE IN STATUS STATUS ENDANGERED STATUS *All figures as of September 2024 1,173 ha 2.15 M **Based on DAO 2019
Slide 20: Climate - Nature Stewardship
Climate - Nature Stewardship PROTECTION AND RESTORATION MARINE BIODIVERSITY AND HABITATS 1,666 ha 436 190,314 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 September 2
Slide 21: Social Inclusion
Social Inclusion REDUCING POVERTY EMPLOYMENT AND LIVELIHOOD 4,857 375 1,341 68 68 76 DIRECT FEMALE DIRECT INDIRECT AVERAGE TRAINING AVERAGE TRAINING AVERAGE EMPLOYEES EMPLOYEES EMPLOYEES HOURS (PER EMPLOYEE) HOURS (MALE) TRAINING HOURS FOR 2024 FOR 2024 (FEMALE) FOR 2024 0.00 0.08 29 Q3 LTIFR Q3 LTI
Slide 22: Social Inclusion
Social Inclusion REDUCING POVERTY EMPLOYMENT AND LIVELIHOOD 2,161 103 750 Employees from Host Tenants in Semirara Registered MSMEs Communities Food Court and in Semirara Island Market *All figures as of September 2024 22 UPDATES • OUTLOOK • CAPEX • DEBT PROFILE • OPERATING HIGHLIGHTS • FINANCIALS 22
Slide 23: Social Inclusion
Social Inclusion BROADER ACCESS EDUCATION AND WELLNESS 57 1,708 4 SCHOLARSHIPS STCI GRADUATES CLASSROOMS GRANTED FROM 2006 TO 2024 BUILT 4,531 92 DWSSII GRADUATES ALTERNATIVE LEARNING SINCE 2003 SYSTEM ENROLLEES FROM 2021 TO 2024 *All figures as of September 2024 23 UPDATES • OUTLOOK • CAPEX • DEBT
Slide 24: Social Inclusion
Social Inclusion BROADER ACCESS EDUCATION AND WELLNESS 15 207K 15.4K INFIRMARY BEDS PATIENTS SERVED BY ORGANIC CROPS COMPANY INFIRMARY PRODUCED SINCE 2016 (IN KG) *All figures as of September 2024 24 UPDATES • OUTLOOK • CAPEX • DEBT PROFILE • OPERATING HIGHLIGHTS • FINANCIALS 24
Slide 25: Social Inclusion
Social Inclusion SUSTAINABLE PARTNERSHIPS PEOPLE GROUPS 2 18.3K 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 September 2024 25 UPDATES • OUTLO
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 September 2024 26 UPDATES • OUTLOOK • CAPEX • DEBT PROFILE • OPERATING HI
Slide 27: Awards & Recognition
Awards & Recognition DMCI Holdings, SMPC honored anew for corporate governance excellence SMPC and its parent company, DMCI Holdings, have been recognized with a 3 Golden Arrow award at the prestigious 2024 ASEAN Corporate Governance Scorecard (ACGS) Golden Arrow Awards. The awards, conferred by the
Slide 28: Awards & Recognition
Awards & Recognition Consunji Honored as 2024 Most Distinguished UP Alumnus; Gotianun Recognized for Excellence in Corporate Management DMCI Holdings and Semirara Mining and Power Corporation Chairman Isidro A. Consunji (BS Civil Engineering ’71) was recognized as the sole recipient of this year’s U
Slide 29: Awards & Recognition
Awards & Recognition SMPC receives plaque of recognition from BFP Region 6 SMPC received a plaque of recognition from the Bureau of Fire Protection on its 33rd anniversary, acknowledging SMPC's valuable support and contributions to BFP Region 6, which have enhanced the success of its rescue operatio
Slide 30: ESG News & Updates: Climate - Nature Stewardship
ESG News & Updates: Climate - Nature Stewardship 19 grafted mango trees were sown during the tree-planting activity of SMPC. The tree planting activity was held at the rehabilitated Panian Ecopark in Semirara Island, Caluya, Antique last July 17 to 19, 2024, together with volunteers from SMPC, Muti-
Slide 31: ESG News & Updates: Emergency Preparedness
ESG News & Updates: Emergency Preparedness SMPC conducts a 5-day training geared towards disaster and emergency preparedness In September 2024, Semirara Island Emergency Action Group (SIEAG) marks its 11th year of equipping residents, SMPC employees, and government units with the skills to respond t
Slide 32: ESG News & Updates: Social Inclusion
ESG News & Updates: Social Inclusion 82 children participate in SCPC and SLPGC Operation Tuli Program Residents from San Rafael, Dacanlao, and Calantas in Calaca City, and Barangay Baclaran and Sampaga in Balayan participated in the Operation Tuli Program of SCPC and SLPGC, in partnership with the P
Slide 33: ESG News & Updates: Social Inclusion
ESG News & Updates: Social Inclusion 24 trainees successfully complete Automotive Servicing Skills Training Program 24 scholars have completed the 59-day NCI Training and additional 30 days NCII Training for the Automotive Servicing Skills Training Program of SCPC and SLPGC. This program is conducte
Slide 34: Market Outlook
Market Outlook Newcastle Prices (in USD/MT) Indonesian Coal Index 4 (in USD/MT) WESM Spot Prices (in Php/KWh) 421 90 8.41 377 379 89 8.02 82 82 7.32 264 77 6.54 6.58 248 65 5.23 6.23 6.91 59 161 148 5.07 140 57 52 4.83 140 140 141 52 52 54 126 4.61 4.19 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2019 2020
Slide 35: Consolidated Capex
Consolidated Capex In PHP bn Q3 Q3 Change 9M 9M Change Key Takeaways 2024 2023 2024 2023 Coal 0.2 0.8 -75% 2.4 2.4 0% ● Q3 group capital spending (capex) declined due to timing, with H2 spending set for Q4; SCPC capex tripled on Unit 2’s SCPC 0.3 0.1 200% 1.1 0.4 175% outage and preparations for Uni
Slide 36: Debt Profile
Debt Profile In Php bn Loans and Cash Position Loan Maturity Schedule 51% 3.8 September 2024 66% 26% 8% Total Loans 7.8 September 2023 54% 30% 15% 28% 19.4 <1 year 1 to 2 years 2 to 4 ye ars More than 4 years Cash and cash equivalents 26.8 *rounding may cause total not to match the sum of parts 18%
Slide 37: Coal Operating Highlights (9M)
COAL OPERATING HIGHLIGHTS 9M 9M Key Takeaways Change 2024 2023 ● Lower S/R due to easier access to 5 Narra mine blocks; Strip Ratio (S/R) Production rose double-digits as a result of improved strip ratio Aggregate* 12.7 13.0 -3% and increase in material movement (176.4 M BCM**** vs 162.6 M Effective
Slide 38: SCPC Operating Highlights (9M)
SCPC OPERATING HIGHLIGHTS 9M 2024 9M 2023 Change Key Takeaways Plant Availability (in %) 80% 94% -15% ● Plant availability declined as outage days rose from 32 to 110, Unit 1 93% 96% -3% following Unit 2’s 77-day planned and Q3 forced outages (32 total Unit 2 67% 93% -28% days) largely caused by boi
Slide 39: SLPGC Operating Highlights (9M)
SLPGC OPERATING HIGHLIGHTS 9M 2024 9M 2023 Change Key Takeaways Plant Availability (in %) 85% 69% 23% ● Plant availability, average capacity, gross generation and sales Unit 1 77% 57% 35% grew by double-digits on fewer outage days (from 171 to 80) and Unit 2 94% 81% 16% less frequent deration of Uni
Slide 40: Overall Power Segment Operating Results
Overall Power Segment Operating Results Q3 2024 Q3 2023 Change 9M 2024 9M 2023 Change Plant Availability (in %) 75% 79% -5% 83% 82% 1% SCPC 83% 99% -16% 80% 94% -15% SLPGC 68% 59% 15% 85% 69% 23% Average Capacity* (in MW) 755 613 23% 755 667 13% SCPC 479 391 23% 464 403 15% SLPGC 276 222 24% 291 264
Slide 41: 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 2,435 1,698 1,633 1,554 1,349 2,067 1,387 963 1,713 1,112 337 1,044 759 999 905 258 1,774 1,730 1,455 1,805 1,391 1,059 795 780 699 728 2020 2021 2022 2023 9M 2024 2020 2021 2022
Slide 42: 2024 Plant Outages Summary
2024 Plant Outages Summary As of November 4, 2024 Unit 1 Unit 2 Unit 1 Unit 2 Actual Total • July 27 to Planned • none • March 6 to May 22 September 10 123 days • July 7 to 11 • January 1 to 3 • May 23 to 24 • March 30 to April • July 13 to 20 • July 12 to 18 • July 28 to August 6 16 Unplanned • Jul
Slide 43: Overall Power Segment Financial Results
Overall Power Segment Financial Results in Php mn Q3 2024 Q3 2023 Change 9M 2024 9M 2023 Change Revenues 5,820 5,293 10% 18,411 19,772 -7% COS (2,464) (2,588) -5% (7,040) (8,437) -17% OPEX (1,018) (808) 26% (2,813) (2,434) 16% Cash cost (3,482) (3,396) 3% (9,853) (10,871) -9% Core EBITDA 2,338 1,897
Slide 44: Standalone Statements of Income
Standalone Statements of Income Q3 2024 Q3 2023 In Php millions % COAL SCPC SLPGC Others Combined COAL SCPC SLPGC Others Combined Revenues 8,154 4,217 1,603 721 14,695 8,129 3,997 1,296 68 13,490 9% COS (4,756) (1,808) (656) (719) (7,939) (4,544) (1,785) (803) (53) (7,185) 10% Govt Share (630) - - -
Slide 45: Standalone Statements of Income
Standalone Statements of Income 9M 2024 9M 2023 In Php millions % COAL SCPC SLPGC Others Combined COAL SCPC SLPGC Others Combined Revenues 35,266 11,648 6,763 842 54,519 42,443 14,055 5,717 222 62,437 -13% COS (16,833) (4,764) (2,276) (824) (24,697) (15,090) (5,976) (2,461) (181) (23,708) 4% Govt Sh
Slide 46: Consolidated Statements of Income
Consolidated Statements of Income Q3 2024 Q3 2023 In Php millions % COAL SCPC SLPGC Others Conso COAL SCPC SLPGC Others Conso Revenues 6,536 4,217 1,603 721 13,077 6,267 3,997 1,296 68 11,628 12% COS (3,851) (1,425) (500) (719) (6,495) (3,521) (1,325) (667) (53) (5,566) 17% Govt Share (630) - - - (6
Slide 47: Consolidated Statements of Income
Consolidated Statements of Income 9M 2024 9M 2023 In Php millions % COAL SCPC SLPGC Others Conso COAL SCPC SLPGC Others Conso Revenues 30,418 11,648 6,763 842 49,671 36,207 14,055 5,717 222 56,201 -12% COS (14,331) (3,464) (1,690) (824) (20,309) (12,699) (3,352) (1,748) (181) (17,980) 13% Govt Share
Slide 48: Consolidated Statements of Financial Position
Consolidated Statements of Financial Position In Php millions SMPC SCPC SLPGC Others Sep 2024 SMPC SCPC SLPGC Others Dec 2023 % Cash and cash equivalents 10,691 4,262 4,103 318 19,374 12,131 4,511 2,125 221 18,988 2% Receivables 3,522 2,267 799 373 6,961 7,333 2,135 1,256 43 10,767 -35% Inventories
Slide 49: 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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