DMCI’s construction arm doubled project wins in 2017

By VG Cabuag - March 11, 2018

https://businessmirror.com.ph/dmcis-construction-arm-doubled-project-wins-in-2017/

D.M. Consunji Inc., the construction arm of DMCI Holdings Inc., said it more than doubled its newly awarded projects last year, with P16 billion worth of projects in sectors like infrastructure, energy, buildings, utilities and plants compared to P8.2 billion in the previous year.

With the new contracts, DMCI was able to close the year with an order book of P25.4 billion, a 26-percent improvement from P20 billion in 2016, it said.

Among its newly signed projects are the Cavite-Laguna Expressway project of MPCALA Holdings, the petrochemical plant of JG Summit Holdings Inc., Maven of Ortigas and Co., Anchor Grandsuites of Anchor Land Holdings, Bued Viaduct and Roadway of Private Infra Development Corp. and the  105-megawatt conventional power plant of Sarangani Energy Corporation, among others.

Meanwhile, some of the major ongoing projects include Metro Manila Skyway Stage 3 of Citra Central Expressway Corp., Six Senses Resort (Phase 2) of Federal Land, Light Rail Transit Line 2 Masinag Stations of the Department of Transportation, City Gate of Ayala Land, Imperium and Royalton of Ortigas and Co. and Radiance Manila Bay (North and South) of Robinson Land Corp.

The major infrastructure projects completed last year include the Ninoy Aquino International Airport Expressway and Runway connecting Naia Terminal 3 to Resorts World Manila.

On a stand-alone basis, DMCI recorded a full-year net income of nearly P1.3 billion in 2017, up 56 percent from P824 million the prior year.

“2017 was a good year for us. We were able to keep a tight rein on our operating costs. The favorable settlement of pending claims and earlier-than-expected completion of some minor projects also contributed to our strong growth,” DMCI president and CEO Jorge A. Consunji said.

DMCI Holdings, meanwhile, recorded a 16-percent increase in consolidated net earnings in 2017, owing to higher profit contributions from its coal energy, real estate, construction and nickel-mining businesses.

Net income attributable to shareholders rose to P14.8 billion in 2017, from P12.7 billion the previous year, following the restatement of earnings from DMCI Homes.

DMCI restated the financials of its property-development arm as it shifted in accounting policy from completed contract method to percentage of completion method, which was done to align with current accounting practice in the real-estate industry.

Excluding a one-time gain of P111 million from the sale of its 10-percent stake in Subic Water and Sewerage Co. (Subic Water) in 2016, core net income rose 17 percent year-on-year, still at P14.8 billion, from P12.6 billion in the previous year.

For the fourth quarter alone, DMCI Holdings grew its net profit by 9 percent year-on-year to P3.1 billion, from P2.8 billion.

“2017 was a challenging year for us but we were able to meet our earnings target of double-digit growth,” DMCI Holdings Chairman and President Isidro A. Consunji said.

“For 2018, our financial performance will likely be more modest because of tapering electricity rates and the unresolved issues in our nickel mining and water businesses,” he said. “But we see strong growth from our coal production and real-estate segments.”