DMCI Holdings’ core businesses lift net profit to P9.2 B in first half » Manila Bulletin Business

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DMCI Holdings’ core businesses lift net profit to P9.2 B in first half

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By James A. Loyola

Diversified engineering conglomerate DMCI Holdings, Inc. reported a 21 percent jump in net income to P9.2 billion in the first half of 2018 from P7.6 billion in the same period last year due to higher contributions from its coal, real estate, construction, nickel mining and water businesses.

DMCI Holdings logo (Photo courtesy of www.dmciholdings.com/)

DMCI Holdings logo (Photo courtesy of www.dmciholdings.com/)

Excluding a P715 million one-time gain on sale of an undeveloped lot by DMCI Homes and P69 million one-time refinancing cost of Maynilad Water Services Inc., the core net income of DMCI Holdings for the first semester grew 10 percent to P8.6 billion from P7.8 billion during the same period last year.

In a press briefing, the firm said its consolidated revenues from January to June 2018 reached P44.2 billion, a 19 percent growth from P37.1 billion during the same period last year.

For the second quarter alone, the holding firm posted a 38 percent surge in profits to P5 billion in profits from P3.6 billion in the same period last year. Consolidated revenues for the same period rose 31 percent year-on-year from P18.3 billion to P23.9 billion.

“All of our businesses fared well except for our power subsidiaries. The unplanned and prolonged outages of Sem-Calaca Power Corporation and Southwest Luzon Power Generation Corporation cut into the profitability of Semirara Mining and Power Corporation (SMPC),” said DMCI Holdings Chairman and President Isidro A. Consunji.

He added that, “DMCI Power continues to implement a lower provisional tariff for its Aborlan power plant because its motion for recomputation is still under review with the Energy Regulatory Commission (ERC).”

SMPC showed a three percent uptick in net income contributions during the first half of the year from P4.5 billion to P4.6 billion due to higher coal sales and coal prices.

Excluding the one-time gain of P715 million, DMCI Homes contributed P1.7 billion in earnings, seven percent higher than P1.6 billion the previous year. This was due to a 12 percent growth in revenue and 4 percent upturn in reservation sales. Net income contributions from affiliate Maynilad grew 16 percent from P877 million to slightly over P1 billion, on the back of a 3.4 percent rise in billed volume and 2.8 percent inflationary tariff adjustment.

Construction arm D.M. Consunji, Inc. booked a 36 percent year-on-year increase in net income share from P497 million to P676 million following higher accomplishment in building projects and the realization of variation orders from projects nearing completion.

Off-grid energy supplier DMCI Power Corporation contributed P214 million in net earnings, a six percent slide from P228 million last year. The decrease mainly resulted from the lower-than-expected provisional tariff granted to its Aborlan power plant in Palawan.

Attributable net income from DMCI Mining Corporation surged 309 percent from P54 million to P221 million, fueled by higher shipments from the old stockpile and shipment of more high-grade nickel ore.

Other income during the first half more than doubled (up 226 percent) from P27 million to P88 million because of higher interest income.

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