Tuesday, August 15, 2017

DMCI Holdings’ core profit grows 21% to P7.6 billion



Published By James A. Loyola

DMCI Holdings, Inc., the country’s most diversified engineering conglomerate, raised its core profits by 21 percent in the first half of 2017 to P7.6 billion from P6.3 billion during the same period last year.
In a press briefing, the firm said the growth was driven by the improved earnings contributions of Semirara Mining and Power Corporation (SMPC), DMCI Homes and D.M. Consunji, Inc. (DMCI).
Including a one-time gain of P111 million for the partial divestment of its stake in Subic Water in March, 2016, net income of DMCI Holdings improved 19 percent from P6.4 billion to P7.6 billion.
“We had a very good first half. Our performance in the second half will likely be more modest due to the higher strip ratio of SMPC compared to the first half,” said DMCI Holdings Chairman and President Isidro A. Consunji.
He added that, a “majority of the new DMCI Homes projects are also scheduled for launch in the second half. However, we can only recognize revenues from these new projects once the collected payments reach our revenue recognition threshold.”
He noted though that, “I think we are on track to achieve our full year target of double-digit growth.”
The consolidated net income of SMPC in the first semester climbed 24 percent year-on-year from R6.4 billion to P7.9 billion as the 4 percent dip in coal sales volume was offset by the 28 percent upsurge in average coal prices. Energy generation increased by 12 percent which was boosted by a 12 percent uptick in electricity prices.
Net income share from DMCI Homes surged 78 percent from P909 million to P1.6 billion due to higher sales and reservations and change in accounting policy from completed contract method to percentage of completion (POC) method.
Construction arm DMCI’s net income contributions increased 25 percent from P397 million to P497 million due to higher percentage of completion on ongoing projects and lower construction costs among its business units.

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