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| SCC 2Q26 QUARTERLY REPORT |
Semirara Mining and Power Corporation (SCC) released its quarterly report for the period ending June 30, 2026. The figures highlight a story of operational resilience: a record-breaking period for the power generation segment successfully offset operational challenges and severe cost inflation in the core coal segment.
Below is an analysis of SCC’s financial performance across its core statements for the first half of 2026 (H1 2026), compared against H1 2025 and Year-End (FY) 2025.
1. Income Statement Analysis
Consolidated performance showed top- and bottom-line expansion despite heavy headwinds in mining operations.
Consolidated Revenues: Reached ₱34.02 billion, up 9% from ₱31.33 billion in H1 2025. Growth was primarily driven by the Power Segment, which grew 14% year-over-year (YoY) to ₱14.80 billion.
Cost of Sales: Increased 12% to ₱19.69 billion. Coal cost of sales expanded by 21% YoY to ₱14.02 billion, driven by higher fuel prices, higher contracted services, and a doubling of the mine strip ratio from 10.4 to 19.7.
Net Income: Reported net income expanded 2% to ₱8.58 billion (from ₱8.42 billion in H1 2025). Basic/Diluted Earnings Per Share (EPS) rose slightly to ₱2.02 from ₱1.98.
Segment Breakdown:
Power Segment: Standalone net income jumped 101% in Q2 alone. Key drivers included a 29% surge in average electricity selling prices (to ₱5.81/KWh), improved plant availability (94%), a 27% decline in depreciation expenses, and a ₱180 million nonrecurring gain.
Coal Segment: Standalone earnings collapsed, leaving the segment to contribute only ~30% of total H1 net income. Coal production plunged 55% (2.5 MMT vs. 5.6 MMT) due to mine pre-stripping and water seepage at the Acacia pit.
2. Balance Sheet Analysis
SCC’s balance sheet fortified its cash position substantially between December 31, 2025, and June 30, 2026.
Cash and Cash Equivalents: Soared by 320% to ₱18.34 billion (up from ₱4.36 billion at FY 2025), reflecting strong operational inflows and new financing proceeds.
Total Assets: Expanded 21% to ₱80.37 billion. Current assets ballooned to ₱47.00 billion from ₱29.66 billion.
Liquidity & Solvency:
Current Ratio: Improved significantly to 4.66x (compared to 3.04x at year-end 2025).
Leverage: Total Noncurrent Liabilities rose to ₱5.92 billion following a ₱5 billion long-term debt drawdown. Despite this, the interest-bearing Debt-to-Equity ratio remains exceptionally low at 0.09.
Total Equity: Rose from ₱55.78 billion at year-end 2025 to ₱64.36 billion by June 30, 2026, driven entirely by retained earnings generated during the half.
3. Cash Flow Statement Analysis
Cash flow generation remained robust, enabling strategic liquidity building despite lower coal output.
Operating Cash Flow: Strongly positive, providing the primary foundation for cash accumulation alongside drawdowns.
Financing Activities: Added cash via a ₱5 billion long-term loan drawdown intended to support liquidity and capital allocation flexibility.
Capital Utilization: Capital expenditures were managed alongside pre-stripping expenses at the Narra and Acacia coal pits.
Bull Case vs. Bear Case
Bull Case (Reasons to be Optimistic):
Effective Business Model Diversification: The power generation segment acts as an organic hedge against coal market disruptions.
Strong Market Conditions for Power: Surging Wholesale Electricity Spot Market (WESM) prices (+70%) and high plant availability (94%) position the power division for ongoing elevated profitability.
Fortress Liquidity: Over ₱18.3 billion in cash and a current ratio of 4.66x offer substantial downside protection and dividend flexibility.
Bear Case (Potential Risks):
Coal Operational Bottlenecks: A 55% plunge in production volume coupled with a 19.7 strip ratio poses ongoing margin threats to the coal business.
Elevated Cash Costs: Production cash costs jumped 46% due to fuel price inflation, contracted service costs, and lower volume absorption.
WESM Volatility: The power segment's elevated margins rely heavily on tight grid conditions and elevated spot market prices, which can normalize rapidly.
Summary
Semirara Mining and Power Corporation delivered a steady first half in 2026, demonstrating the structural strength of its dual-engine model. While the coal segment faced severe operational headwinds, lower volume, and rising cash costs, the power segment logged record profitability driven by 94% plant availability and 29% higher average selling prices. With a cash reserve of ₱18.34 billion and minimal overall debt leverage, SCC remains in a solid financial position to navigate near-term mining bottlenecks.
Source: PSE Edge
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