MAKATI CITY, Philippines — Shares of Semirara Mining and Power Corp. (SMPC) suffered a significant blow on Monday, April 27, 2026, as the market reacted to the unexpected postponement of a key power supply auction. The delay wiped out approximately P18 billion from the company’s market capitalization in a single trading session, marking one of the steepest declines for the Consunji-led integrated energy firm in recent years.
The sell-off followed the Department of Energy’s (DOE) decision to reset the timeline for the Green Energy Auction Program (GEAP), where Semirara was expected to be a dominant bidder.
The P18-billion valuation wipeout was triggered by the DOE’s announcement that the third round of the Green Energy Auction would be moved to the fourth quarter of 2026:
- Market Expectation: Investors had heavily priced in Semirara’s transition toward more renewable and “hybrid” energy projects, which were contingent on winning contracts in the mid-2026 auction.
- Price Drop: SMPC shares plummeted by over 11% shortly after the opening bell, as institutional investors adjusted their growth projections for the company’s power division.
- Revenue Uncertainty: Analysts noted that the delay creates a “revenue gap” for the company’s upcoming fiscal years, as several of its aging coal contracts are nearing expiration without immediate replacements.
The loss in market value also had a ripple effect on its parent firm, DMCI Holdings:
- Consolidated Loss: DMCI’s own stock price dipped as Semirara contributes the lion’s share of the conglomerate’s total earnings.
- Investor Sentiment: There is growing concern among traders regarding the regulatory environment for energy firms, with some describing the DOE’s shifting timelines as a hurdle for long-term capital expenditure planning.
Market experts are divided on whether the P18-billion slump is an overreaction:
- The Bear Case: Skeptics argue that the delay exposes Semirara’s heavy reliance on regulatory milestones and highlights the risks of its slow transition away from pure coal mining.
- The Bull Case: Value investors suggest the fundamentals remain strong, citing the company’s massive cash reserves and its high dividend yield, which remains one of the best in the Philippine Stock Exchange (PSE).
Despite the setback, Semirara leadership has signaled that it will use the “breathing room” to further optimize its existing coal-fired power plants in Calaca, Batangas.
“While the auction delay is disappointing, our operational efficiency and coal export volumes remain robust. We are well-positioned to participate whenever the DOE is ready to proceed.” — Internal Statement Summary
The company is expected to release its formal first-quarter earnings report later this week, which investors hope will provide some much-needed clarity on how management plans to recover the lost valuation.
