The 2005 net profit is 11 percent higher than than restated figures of P1.439 billion NPAT in accordance with New IFRS/IAS Reporting Standards, and translates to P5.469 Earnings Per Share (EPS).

In a meeting last March 6, the company’s Board of Directors approved the payment of a cash dividend of P1.20/share for stockholders of record as of Mar. 27, 2006. The declaration is in line with the company’s dividend policy of declaring cash dividends amounting to a minimum of 20 percent of Annual Audited Net Profits After Taxes.

Semirara management expressed their confidence in the sustainability of this dividend policy in the light of the company’s continuing bright prospects in the foreseeable future.

The company attributed the higher profits to higher coal prices with composite average FOB prices increasing by 12 percent from P1,974/metric ton to P2,205/MT during the year. Revenues also grew by P487 million to R5.6 billion, for a 10 percent growth over 2004’s P5.1 billion.

In accordance with the expansion and modernization program, Semirara’s production increased to a historic level of 2.9 million metric tons (MT’s) of product coal, up 16 percent over last year’s 2.5 million MT’s as additional production and support equipment were deployed.

Due to National Power Corporation’s Calaca Power Plant No. 2’s prolonged maintenance shutdown, sales volume, however, dipped slightly by 34,000 MT or 1 percent from 2.513 million MT’s in 2004 to 2.479 million MT’s in 2005 largely.

Deliveries to Calaca in 2005 dropped to 1,225,110 MT from 2004 sales volume of 1,453,480 MT, lower by 228,370 MT or 16 percent.

On a positive note, the company’s thrust towards market diversification has paid off as it increased deliveries to NAPOCOR Independent Power Producers like Mirant Corporation’s Sual and Pagbilao Plants and other non- NAPOCOR customers.

Sual and Pagbilao posted higher volumes of 147,000 MT’s and 61 thousand MT, respectively, an increase of 75,000 and 26,000 MT’s over last year’s deliveries of 72,000 and 35,000 MT, respectively.

Likewise, non-NAPOCOR customers increased their purchases by 95,000 MT, further tempering the negative effects of the Calaca shutdown. The cement industry largely accounted for the increased volumes of non-NAPOCOR accounts as Semirara coal continued to gain wider market acceptance in the light of the company’s efforts to improve product quality.