Semirara Mining and Power Corporation (SCC) Extended Graph Analysis

December 4th, 2019 Posted by Extended Analysis No Comment yet

About the Company

SCC

Semirara Mining and Power Corporation started as a Semirara Coal Corporation and transformed into a Philippine power industry committed in providing affordable and reliable electricity to the country. The Founding Chairman is David M. Consunji. 

Incorporated in the Philippines on February 26, 1980 with exclusive rights to explore, extract and develop the coal resources in Semirara Island, Antique Province, the right remains to this day. SCC is vertically integrated coal-fired power plants in the country. 

Semirara Mining and Power Corporation became a publicly traded company in 1983 under the Philippine Stock Exchange with the ticker symbol SCC. The company is headquartered in 3rd Floor Dacon Building, 2281 Chino Roces Avenue Extension, Makati City, Philippines.

 

Semirara Mining and Power Corporation (SCC) Extended Graph Analysis

 

1. SCC CASH FLOWS

SCC CASH FLOWS

2014 2015 2016 2017 2018 2019
Net cash provided by operating activities 11,925,643,441 10,683,869,034 16,420,476,772 18,206,968,085 9,503,158,826 18,846,489,534
Net cash used for investing activities -10,671,263,716 -5,115,627,968 -6,689,482,960 -7,281,852,466 -8,572,237,935 -8,802,225,466
Net cash provided by (used for) financing activities -2,388,159,045 -4,467,782,858 -7,316,857,789 -9,440,375,645 -7,489,807,103 -7,038,035,424
Capital expenditure -10,739,495,786 -5,036,739,075 -7,242,108,616 -6,324,077,517 -9,539,112,245 -9,780,999,781
Free cash flow 1,186,147,655 5,647,129,959 9,178,368,156 11,882,890,568 -35,953,419 9,065,489,753

Facts:

  • Cash from operating activities were Php 18.846 billion in 2019.
  • Net cash used for investing activities were Php -8.802 billion in 2019.
  • Net cash provided by (used for) financing activities were -7 billion in 2019.
  • Capital expenditures were Php -9.781 billion in 2019.
  • Free cash flow was Php 9 billion in 2019.

Explanation

  • Cash from operating activities although erratic in movement had a growth of 58 percent in five years.
  • Cash from investing activities were investment in property, plant and equipment; and purchases of intangibles.
  • Net cash provided by financing activities were debt issued, debt repayment and dividend paid.
  • Capital expenditure was investment in property, plant and equipment.
  • Free cash flow increases year-over-year except in 2018 where it suffered negative due to changes in working capital.

Interpretation

The company has an acceptable free cash flow, although suffered negative it increased from Php-36 million to Php 9 billion from 2018 to 2019. The company has efficiently managed to generate cash from operations in the last five years.

 

2. SCC BALANCE SHEET

SCC BALANCE SHEET

2014 2015 2016 2017 2018 2019
Total cash 3,683,125,544 5,205,842,396 7,114,141,283 8,521,640,371 1,954,063,676 1,954,063,676
Current assets 12,772,627,810 15,092,708,536 21,154,329,852 24,333,646,377 25,739,222,770 25,739,222,770
Net property, plant and equipment 36,366,478,374 39,758,121,302 43,352,166,628 43,014,048,021 43,519,724,033 43,519,724,033
Non-current assets 39,128,747,884 42,064,328,709 44,606,146,650 44,262,759,312 45,309,715,454 45,309,715,454
Total assets 51,901,375,694 57,157,037,245 65,760,476,502 68,596,405,689 71,048,938,224 71,048,938,224
Short-term debt 3,332,638,748 8,183,728,394 3,431,583,887 3,555,960,317 10,426,073,925 10,426,073,925
Current liabilities 12,138,201,589 15,555,721,715 15,652,536,957 14,407,272,446 20,372,103,747 20,372,103,747
Long-term debt 16,088,724,435 11,359,881,203 13,258,162,966 14,468,517,855 10,042,954,442 10,042,954,442
Total liabilities 29,195,164,178 30,255,955,086 31,474,165,253 30,917,026,549 31,116,251,620 31,116,251,620
Stockholders’ equity 22,706,211,516 26,901,082,159 34,286,311,249 37,679,379,140 39,932,686,604 39,932,686,604

Facts:

  • Cash was Php 2 billion in 2019.
  • Current assets were Php 25.7 billion in 2019.
  • Net property, plant and equipment was Php 43.5 billion in 2019.
  • Non-current assets were Php 45 billion in 2019.
  • Total assets were Php 71 billion in 2019.
  • Short-term debt was Php 10 billion in 2019.
  • Current liabilities were Php 20 billion in 2019.
  • Long-term debt was Php 10 billion in 2019.
  • Total liabilities were Php 31 billion in 2019.
  • Stockholders equity was Php 40 billion in 2019.

Explanation

  • Total cash was erratic in movement in the last five years and has a negative growth in five years. It fell 77 percent in one year from 2017 to 2018.
  • Cash represents 8 percent of current assets.
  • Current assets have doubled in five years. It represents 36 percent of total assets.
  • Property, Plant and equipment had increased 20 percent in five years. It represents 96 percent of non-current assets.
  • Non-current assets represents 64 percent of total assets.
  • Total assets increases year-over-year and has a growth of 37 percent in five years.
  • Short-term debt represents 51 percent of current liabilities.
  • Current liabilities represents 65 percent of total liabilities.
  • Long-term debt represents 32 percent of total liabilities.
  • Total liabilities was 44 percent of total liabilities and equity.
  • Total equity represents 56 percent of total liabilities and shareholders equity.

Interpretation

The company’s balance sheet shows that the management is efficient in running its business operation year-over-year. Further, it shows its growing in the last five years. And has sufficient current assets to pay current obligations in due time. 

 

3. SCC INCOME AND MARKET

SCC INCOME AND MARKET

2014 2015 2016 2017 2018 2019
Sales 28,585,341,089 24,680,171,579 36,584,375,140 43,943,489,219 41,968,512,823 45,234,431,331
EBIT 6,559,565,972 9,899,091,968 13,009,730,429 15,738,076,298 13,554,916,247 11,629,313,377
Net Income 6,861,294,479 8,486,909,081 12,040,669,988 14,209,139,819 12,025,381,058 11,608,835,822
Market Capitalization 151,763,000,000 145,884,000,000 138,529,000,000 156,710,000,000 97,975,000,000 99,250,000,000
Intrinsic Value 116,785,324,423 138,626,168,139 136,759,304,573 173,053,868,169 116,632,959,353 130,497,083,292
EBITDA 8,560,350,354 11,644,990,348 17,110,448,223 22,671,652,962 21,406,861,156 19,509,179,548

Facts:

  • Sales were Php 45 billion in 2019.
  • EBIT was Php 11.629 billion in 2019.
  • Net income was Php 11.609 billion in 2019.
  • Market capitalization was Php 99.250 billion in 2019.
  • Intrinsic value was Php 130.487 billion in 2019.
  • EBITDA was Php 19.56 billion in 2019.

Explanation

  • Sales has a growth of 58 percent in five years and it grows year-over-year.
  • EBIT growth was 77 percent in five years.
  • Net income growth was 69 percent in five years.
  • Market capitalization decreased by 35 percent from 2014, it decreases year after year from 2014 to 2018, in 2019 it began to increased by 1.30 percent..
  • Intrinsic value was erratic in movement in the last five years, further, IV is greater by 31 percent against market value.
  • EBITDA growth was 128 percent in five years.

Interpretation

The net income of SCC represents 26 percent of Sales which is impressive, it never suffered a negative bottomline in the last five years. The management has managed to generate sufficient and increasing sales on its operations. SCC is profitable.

 

4. SCC FINANCIAL RATIOS

SCC FINANCIAL RATIOS

2014 2015 2016 2017 2018 2019
Asset Turnover (average) 0.59 0.45 0.60 0.65 0.60 0.64
Return on Asset (ROA) % 14.20 15.56 19.59 21.15 17.22 16.50
Return on Equity (ROE) % 32.04 34.22 39.36 39.49 30.99 27.70
Financial Leverage (average) 2.29 2.12 1.91 1.82 1.78 1.72
Return on Invested Capital % 17.73 19.44 25.36 27.35 21.61 19.23
Interest Coverage 24.56 42.33 25.51 25.29 15.70 0.00
Earnings per Share Php 1.60 1.99 2.82 3.33 2.83 2.73

Facts:

  • Asset turnover was averaging 0.64 in 2019.
  • Return on assets was 16.5 percent in 2019.
  • Return on Equity was 27.70 percent in 2019.
  • Financial leverage was averaging 1.72 in 2019.
  • Return on invested capital was 19.23 percent.
  • Interest coverage was 15.70 in 2018.
  • Earnings per share was 2.73 in 2019.

Explanation

  • Asset turnover tells us that for every peso invested in assets the company generate 64 centavos of sales.
  • Return on assets indicates that for every peso in assets, the company generates 16.5 centavos of net income.
  • Return on equity tells us that every peso that was invested in equity it generates 27.7 centavos of net income.
  • Financial leverage indicates that for every peso in equity the company had Php 1.72 in total assets, Php 0.72 was borrowed.
  • Return on invested capital tells us that 19.23 percent is the return that the company makes over its invested capital.
  • Interest coverage tells us that SCC is able to make interest payments on its current obligations in due time.
  • Earnings per share means that if SCC distributed every peso of net income to its shareholders, each of their shares will receive Php 2.73.

Interpretation

Overall view of financial ratios indicates that the SCC is profitable.

 

5. SCC KEY OFFICERS

LIST OF KEY OFFICERS

NAME TITLE
Isidro A. Consunji CEO, Chairman of the Board
Maria Cristina C. Gotanum President, COO, Chief Risk Officer
Junalina S. Tabor CFO, Vice President
Jaime B. Garcia VP, Procurement and Logistics
Nena D. Arenas VP, Chief Governance Officer, Compliance Officer
Atty. John R. Sadullo VP, Legal Corporate Secretary, Corporate Information Officer
Antonio R. Delos Santos VP, Treasurer
Jose Antonio T. Villanueva VP, Marketing for Coal
Andreo O. Estrellado VP, Power Market and Commercial Operation
Ruben P. Lozada VP, Mining Operations, Resident Manager
Carla Cristina T. Levina VP, Chief Audit Executive
Jojo L. Tandoc VP, Human Resources and Organization Development
Kamine Andrea B. San Juan Assistant VP, Corporate Planning for Power

Explanation

  • Isidro A. Consunji is a BS Civil Engineering, University of the Philippines, Master’s Degree in Business Economics, Center for Research & Communication, Business Management, Asian Institute of Management, Advance Management from IESE School, Barcelona, Spain. 
  •  Maria Cristina C. Gotianun – BS Business Economics, University of the Philippines, Majored in Spanish, Instituto de Cultura Hispanica, Madrid, Spain
  • Jorge A. Consunji – BS Industrial Management, Engineering, La Salle University.
  • Cesar A. Buenaventura – Bachelor of Science in Civil Engineering as a Fulbright Scholar, Lehigh University, Bethlehem, Pennsylvania 
  • Herbert M. Consunji – Bachelor of Science in Commerce Major in Accounting, De La Salle University.
  • Ma. Edwina C. Laperal – BS Architecture, University of the Philippines, Masters Degree in Administration, University of the Philippines
  • Josefa Consuelo C. Reyes – AB Economics, University of British Columbia, Vancouver, Canada. Strategic Business Economics Program University of Asia and the Pacific.
  • Luz Consuelo A. Consunji – Bachelor’s Degree in Commerce Major in Management, Assumption College; Masters Degree in Business Economics, University of Asia and the Pacific.
  • Rogelio M. Murga – BS Mechanical Engineering, University of the Philippines; Senior Management Program, Harvard Business School, Vevey, Switzerland; Honorary Degree of Doctor of Science – Honors Causa, FEATI University.
  • Honorio O. Reyes-Lao – Bachelors of Arts Major in Economics, De La Salle University; Masters Degree in Business Management, Asian Institute of Management.
  • Antonio Jose U. Periquet – MBA, Darden Graduate School of Business Masters Degree in Economics, Oxford University, Bachelor’s Degree in Economics, Ateneo de Manila University.

 

6. SCC LOBBYING AND CONTRIBUTIONS

SEARCHED:

OpenSecret.org     The LOBBYIST

Result:

 

No Politicians or Lobbyists Found

 

 

7. SCC FINANCIAL STRENGTH

SCC FINANCIAL STRENGTH

DATA

PhP
Working capital 5,367,000,000
Total assets 71,048,938,224
Sales 45,234,431,331
EBIT 11,629,313,377
Market value of equity 99,250,000,000
Book value of total liabilities 31,116,251,620
Retained earnings 20,468,072,403

CALCULATION:

Ratio Score Result
A – Working Capital / Total Assets 0.08 1.20 0.09
B – Retained Earnings / Total Assets 0.29 1.40 0.40
C – EBIT / Total Assets 0.16 3.30 0.54
D – Market Value of Equity / Book Value of Total Liabilities 3.19 0.60 1.91
E – Sales / Total Assets 0.64 1.0 0.64
Z-Score     3.58

 

Formula: Z-Score = 1.2A + 1.4B + 3.3C + 0.6D + 1.0E

 

Explanation

Z-Score is a statistical measurement that compare data points from different sets of data to find correlations. This measurement by Dr. Edward Altman is a significant measure in determining the financial strength of the company because it relies on different weighted financial liquidity and profitability metrics to come up with the overall score. This measure indicates the probability of bankruptcy.

SCC has a Z-Score of 3.58. Dr. Altman’s grading scale of 3.0 and above indicates that the company will not declare bankruptcy. In other terms, the company is not close to insolvency. The main factors of this statistical measurement is the profitability, liquidity, leverage and efficiency.

 

CITATION

http://www.semiraramining.com/our_organization

https://www.opensecrets.org/search?q=Semirara+Mining+and+Power+Corp+SCC&type=indiv&__cf_chl_captcha_tk__=a00a32188a7f3f85f65452c421f7a694ce5249e0-1575258353-0-ATFtgwWRMeDvt4iMyEHln_cmUthyzcEwWakDM8CDWFAjnNJG8KO3g6Yaw3rSIVpxFgyMhJ–rRfewraXaenfBeE2dU82-napg4-yJybfimHrTRE3A3ZHas9hNcdpdQBNVRm5xEVdT_fXaBJuatWzwQfz-7fFllcCEzFjBR-ose_2rAR4yRUF6bY9kbiYEVm6zRLRjfa18O3HCW_yZqFXe79BvIXifojvt2tnGyahP7ySG9HljRu-jA6OYvZSjl9S0JUCvEZf7ZQYMvB77F54hdshRamoCkb3FFdKDMIlxtxkDZbm_1ORWkppCrt-Ie6mJdLDbA6Bq4ObUu52z4PuDMdEt-Ufi7bIPnsIbRA24eFCOCkuPAyw-iAxqy6r2TEM_xknvqfXWZWoCIxzyYPAHfooY7RAYkkR_qJFr7-VgEq6xBFRhnveinLwcTee4NyFGg

 

Researched and written by Criselda

Twitter: criseldarome

 

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