SCC - Company Review (FY2010) Part 1




Semirara Mining Corporation or SCC is a coal mining company incorporated in February, 1980 to explore, develop, and mine the coal resources in Semirara Island of Antique. As of end of 1st Quarter 2011, 56.32% of total shares of SCC is owned by DMCI Holdings, Inc.(DMC).

Business Details:
1. Coal Mining - the company generates its main revenues through the production of sub-bituminous coal. In 2010, 57% of the volume of coal products is exported, China is the main custormer (80%). For its power business, 13% of the coal is used. The remaining volume is sold to other power plants, cement plants and other local industries.


2. Power - the company owned 100% of the 2 power generating units of SEM-Calaca Power Corporation. This 2 units has total rated capacity of 600 MW however utilization is only at 55%. Rehabilitation is currently in progress to maximize the capacity.




Business Performance:

SCC's acquisition of SCPC (Calaca Power Plant) has boosted the profitability in 2010. In addition, the significant increase in sales volume of coal resulted to 24% increase in coal revenues versus in 2009. Consolidated revenue is almost doubled to P14.24 billion compared to previous year.


This year's net income is 114% higher that P1.85 million in 2009.

Take note that the total number of shares have increased by 28% from 278M in 2009 to 356M shares after the stock rights offer last year. Despite of this, the earnings per share has grown to 82% or P12.10 per share this year.

For 2010, 62% of the revenue is attributed to its coal business while 38% was from its power sector.

Click here for the continuation: SCC - Company Review (FY2010) Part 2.



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