DMCI H1 earnings reach P9.2 billion

By VG Cabuag - August 14, 2018

https://businessmirror.com.ph/dmci-h1-earnings-reach-p9-2-billion/

ENGINEERING conglomerate DMCI Holdings Inc. on Tuesday said it recorded a 21-percent increase in earnings during the first half of the year to P9.2 billion, from last year’s P7.6 billion, helped by the asset disposal of its property development arm and the increased activity in its mining units.

Revenues rose 19 percent to P44.2 billion from P37.1 billion last year.

For the second quarter alone, DMCI’s profits reached P5 billion, up 38 percent from P3.6 billion last year. Consolidated revenues for April to June was 31 percent higher to P23.9 billion from P18.3 billion.

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

“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,” he said.

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, 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.

DMCI Homes was able to dispose of about 1.9 hectares of its land holdings near Balintawak, Quezon City, to the Sytengco group, which controls SBS Philippines Corp., a chemical trader that wants to venture into property development.

Consunji said Sytengco’s offer for its property “was good” so the company gave in.

From April to June, core net income of the holding firm grew 16 percent year-on-year to P4.2 billion from P3.6 billion.

Semirara Mining posted a 3-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, 7 percent higher than the P1.6 billion made the previous year. This was due to a 12-percent growth in revenue and a 4-percent increase in reservation sales.

Net income contributions from affiliate Maynilad Water Services Inc., the water concessionaire for the west zone of Metro Manila, grew 16 percent to over P1 billion from P877 million last year, on the back of a 3-percent rise in billed volume and a 2.8-percent inflationary tariff adjustment.

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

Off-grid energy supplier DMCI Power Corp. contributed P214 million in net earnings, a 6 percent decline 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 Corp. surged to P221 million from P54 million last year, fueled by higher shipments from the old stockpile and shipment of more high-grade nickel ore.

Other earnings during the first half more than tripled to P88 million from P27 million due to higher interest income.