SMPC remits P3.57 billion in royalties to government

Semirara Mining and Power Corporation (SMPC) remitted lower royalties to the Department of Energy (DoE) in 2018 at P3.57 billion, as it recorded a drop in coal sales volume for the year.

In a statement over the weekend, the integrated energy company said the royalties — or the government’s share in its mining revenues — was 17% lower than the P4.3 billion it remitted in 2017. This came after an 11% decline in coal sales volume to 11.6 million metric tons (MMT) from 13.1 MMT.
About P1.43 billion of the royalties will be distributed to SMPC’s host communities: Barangay Semirara will get about P500 million, the municipality of Caluya will receive P642 million, while the province of Antique will get P285 million.

This brings SMPC’s remittances to the national government to more than P21 billion since it was acquired by Consunji-led DMCI Holdings, Inc. in 1997. The remittance is in line with Republic Act No. 7160, which mandates that local government units are entitled to a 40% share of royalty proceeds from petroleum, coal, geothermal, hydrothermal, and wind resources.

“Our partnership with DoE allows us contribute meaningfully to the economy of our host communities. Aside from royalties, we also generate employment in Semirara Island and nearby areas,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said in a statement.

The company directly employs more than 3,300 people in its mine site, making it the biggest employer in Semirara Island and Caluya.

SMPC reported a 49% drop in earnings to P2.33 billion in the first quarter of 2019, weighed down by an 18% decline in coal prices to P2,272 per ton during the period from P2,786 per ton last year.

Despite its slower performance, SMPC remains to be the largest contributor to DMCI Holdings’ net income at P1.42 billion, 49% lower year on year.
Overall, DMCI Holdings saw its net income slump by 26% to P2.87 billion in the first quarter, from the P3.86 billion it posted in the same period a year ago. Revenues also slipped by 3.2% to P19.65 billion. 

Source: Busines World