Consunji’s DMC and Aboitiz’s AP sit on opposing ends of the coal trade, may explain their respective buying and selling of their companies’ shares

Two notable publicly listed companies are at the forefront in the coal trade. But the two are sitting on the opposite end of the coal trade. Their respective positions in the coal trade may explain their owner’s action.

Aboitiz Power (AP), controlled by the Aboitiz family, is one of the biggest if not the biggest coal-fired power plant operator in the country. As the biggest operator of coal-fired power plants, AP is a big consumer of coal.

The sizzling coal price increases the fuel costs of AP’s coal-fired power plants. Coal-fired power plant operators may not be able to pass on the complete impact of the surging coal prices to the consumers. This could be true as the election season is fast approaching. The rising prices of everything may call for scrutiny by politicians who are eager to score points from voter-consumers.

Just recently, Aboitiz Equity Ventures (AEV), the publicly listed holding company of the Aboitiz, announced that it is selling a 25.01% stake in AP to Japan-based JERA Co., Inc. for around US$1.463 Billion. The Aboitiz family’s private holding company, Aboitiz & Co., is also selling a 1.99 stake in AP.

The Aboitiz’s action contrast that of the Consunji’s. The Consunji family members have been steadily buying shares of DMCI Holdings (DMC) shares. Even their private holding company, DFC Holdings, is amassing DMC shares.

Well, the Consunji’s are sitting on the opposite end of the Aboitiz’s in the coal trade. The Consunji controlled DMC through its subsidiary Semirara Mining and Power (SCC) is the country’s biggest coal miner if not the country’s only coal miner. The sizzling coal price could provide DMC with a windfall.

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