Semirara Mining Power and Corporation

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COMMON SIZED- STATEMENTS OF COMPREHENSIVE INCOME (CONSOLIDATED)

ACCOUNTS

2014

2013

2012

REVENUE

100%

100%

100%

Less: COGS

(66.21%)

(51.63%)

(60.64%)

Gross Profit

33.79%

48.37%

39.36%

Less: Operating Expense

(11.09%)

(13.37%)

(12.66%)

Depreciation

(0.18%)

(0.19%)

(1.41%)

Loss on PPE (Writedown)

(0.0004%)

(5.71%)

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Operating Profit

22.52%

29.11%

25.29%

Other Income(Charges)

Other Income

0.72%

1.03%

1.32%

Financing Income

0.15%

0.10%

0.34%

Foreign Exchange Gain or Loss

(0.18%)

(1.76%)

(1.62%)

Finance Cost

(1.13%)

(1.39%)

(2.06%)

Income Before Taxes

22.07%

27.08%

26.49%

Provisions For( Benefit from) Income Tax

1.93%

0.43%

(0.16%)

Net Income

23.78%

27.51%

26.33%

ANALYSIS:

In the over all performance of Semirara, in terms of their production efficiency, operating efficiency and overall efficiency, the results show that year 2013 is the most efficient because it has the highest percentage of net income among the three years. While 2014 is the least efficient because it has the lowest percentage among the three years presented but investors will still be confident on investing in Semirara because it still has stable income. The biggest factors that make 2014 as the most inefficient year among the 3 years is because of the spot purchases in the power industry and the materials and supplies in the coal industry. It seems that SMPC over purchased these two accounts that made the cost of goods sold bigger. Spot purchases are the done by the power company to meet a certain requirements in this year. Year 2014 as we all know, we experienced a major power shortage especially during summer. To meet these power shortage, SMPC is force to do spot purchase to cope up with this shortages. Along with it is made SMPC to double their production to meet the coal demand during that period to answer the power shortages problem. That made the purchase many supplies to support their operations during 2014 period. In terms of their operating expenses, year 2013 has the highest because the depreciation. This was caused maybe by the increased operations of SMPC in year 2013 in efforts to counter power shortages. In year 2014, government share was increased because SMPC in year 2013 is granted major expansions to operate in Semirara Island. Along with this growing expansion is also the growing responsibility of SMPC to the LGU’s of that island. In their EBIT, they recover in their loss on foreign exchange which make it lesser.

COMMON-SIZED STATEMENT OF COMPREHENSIVE INCOME (COAL)

ACCOUNTS

2014

2013

2012

Revenue

100%

100%

100%

Less: COGS

(62.84%)

(68.91%)

(67.99%)

Gross Profit

37.16%

31.09%

32.01%

Less: Operating Expense

(13.69%)

(13.42%)

(13.88%)

Depreciation

(0.15%)

(0.22%)

(0%)

Loss on PPE (Writedown)

(0%)

(0%)

(0%)

Operating Profit

23.32%

17.45%