SEMIRARA Mining and Power Corp. (SMPC) saw its shares fall last week after it reported earnings results for the third quarter.
The energy company was the 16th most actively traded stock last week, with a total of 9.86 million shares worth P315.28 million changing hands from Oct. 28 to Oct. 31, as All Saints’ Day on Nov. 1 cut the trading week short, data from the Philippine Stock Exchange showed.
Shares of the company closed at P32.50 apiece, 3.4% lower than the P33.65 close a week prior.
For the year, the stock’s price rose 7.4% from its P30.25 close on the last trading day of 2023.
Analysts attribute the week-on-week decline to the release of the company’s third-quarter earnings and its dividend ex-date on Oct. 28.
For the third quarter, SMPC posted a net income of P3.1 billion, down 8.3% from P3.4 billion in the same period last year.
“Our third-quarter results also reflect the seasonal impact of the rainy season on coal shipments and electricity prices, both of which we were able to partially offset through focused cost management and operational efficiency initiatives,” SMPC President and Chief Operating Officer Maria Cristina C. Gotianun said in a statement on Oct. 30.
“[Last week, the company’s] stock moved cautiously, reflecting investor sentiment adjusting to these earnings amid concerns over softer coal prices and global demand dynamics,” Arielle Anne D. Santos, equity analyst at Regina Capital Development Corp., said in an e-mail.
SMPC’s coal average selling price dropped by 15% to P2,811 per metric ton (MT), while total shipments grew by 16% to 2.9 million MT in the third quarter.
“Despite this dip in net income, the 16% rise in coal shipments and the strong export demand could signal recovery potential going forward,” Jervin De Celis, equity trader at Timson Securities, said in an e-mail.
The company’s ex-dividend date last Oct. 28 further pushed the stock down, Peter Louise D. Garnace, equity research analyst at Unicapital Securities, Inc., said in an e-mail.
Stocks of the company bought on or after Oct. 28 would not receive dividends.
Moving forward, analysts expect the energy company to generate higher coal shipments in the fourth quarter amid winter restocking activities.
“We look forward to [SMPC’s] expansion plan as it earmarked over P291-billion capex in the next five years to operate its two existing mines — Narra and Molave,” Mr. Garnace added.
Mr. De Celis sees SMPC’s net income for the fourth quarter at P3.19 billion and full-year earnings at P18.7 billion.
This week, he placed his support at P31.70 and resistance at P34.
“Support is seen at P33.50. Resistance is at P34.40. Consolidation around support may be more likely [this week], as the market digests recent earnings and anticipates further clarity in demand recovery,” Ms. Santos said.
Mr. Garnace pegged his support at P31 and resistance at P33.85. — Karis Kasarinlan and Paolo D. Mendoza
SMPC shares fall on Q3 earnings, ex-date
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