By Iris Gonzales (The Philippine Star) | Updated May 13, 2017 - 12:00am
MANILA, Philippines - Consunji-led DMCI Holdings Inc. reported a 22 percent jump in its first quarter net income to P3.7 billion.
In a briefing Thursday night, DMCI Holdings chairman and president Isidro Consunji attributed the growth to the strong performance of Semirara Mining and Power Corp.
Excluding a one-time gain of P111 million last year for the partial sale of its stake in Subic Water, DMCI’s core net income improved 26 percent.
Consunji expects the company to post stronger growth this year.
“2017 will be a better year for us. We expect double-digit growth from our energy and real estate companies, and modest growth from construction and nickel mining” Consunji said.
DMCI’s businesses are in coal, power, real estate, construction, water and mining.
Semirara Power recorded a 52 percent hike in profit to P4.42 billion, its highest quarter income to date. This was driven by a 24 percent increase in coal sales volume and a 41 percent jump in average coal prices.
As a result, SMPC’s first quarter net income contribution climbed 53 percent to P2.51 billion and is expected to account for 60 percent by the end of the year.
On the other hand, DMCI Homes’ income contribution dropped 11 percent because of deferred recognition of revenues from its high rise projects which normally take three to four years to complete.
The water utility business under Maynilad likewise reported a 30 percent drop in net income contribution to P282 million amid delays in the implementation of the rate-rebasing tariff caused operating expenses to rise faster than revenues from water and sewer services.
Net income contribution from core investment D.M. Consunji Inc. also declined eight percent to P182 million because of lower revenues and reduced margins from its infrastructure projects.
Off-grid energy supplier DMCI Power also recorded an 11 percent decline in earnings contribution to P87 million following the expiration of its income tax holiday for its Masbate operations.
DMCI Mining returned to profitability with a P32 million contribution.
In contrast, the nickel segment incurred a net loss of P100 million due to lower shipment volume and depressed nickel ore prices.