DMCI Holdings earns P1.4 billion in Q1, up by 81%

By JAMES A. LOYOLA

May 18, 2010, 3:49pm

DMCI Holdings, Inc. reported a jump of 81 percent in its first quarter consolidated net income to P1.4 billion in 2010 from P775 million in 2009.

In a disclosure to the Philippine Stock Exchange, the firm said significant growth in the construction and mining business along with the maintained results in the real estate segment and the water investment all contributed to the impressive bottom line.

For the period, the construction was the main driver of growth for DMCI due to the revenues recognized from works on the new big ticket projects.

Also, the mining business, particularly coal mining, doubled contributions as coal deliveries to both exports and domestic customers picked up. Water and real estate registered marginal but respectable improvements as well.

Despite a spike in operations, first quarter net contributions from the water business (Maynilad Water Services) reported a sustained amount of P391 million in 2010 compared to P337 million in 2009, due much to the consortium adjustments recognized which extraordinarily increased 2009 first quarter income.

The construction business more than tripled its net contributions for the period from P145 million last year to P500 million this year as general construction and engineering works from local buildings and domestic infrastructure projects coupled by foreign steel fabrication contracts boosted revenues.

The general construction unit, operated under wholly-owned, D.M. Consunji, Inc. (DMCI), tripled net contributions to P390 million as construction and engineering works from the new big ticket projects were essentially started in the second half of 2009.

DMCI’s coal mining business and its major power generating asset (Calaca), both lodged under 58.8 percent-owned Semirara Mining Corporation, reported an improvement in first quarter operating results from a net income of P298 million in 2009 to P594 million in 2010 providing an 80% growth in net contribution from P173 million to P312 respectively.

The Company’s real estate business, under the brand name DMCI Homes, recognized a 24 percent increase in net contributions for the period from P134 million last year to P166 million this year despite a 31 percent drop in realized revenues.

DMCI’s steel fabrication business, 98 percent-owned Atlantic Gulf and Pacific Company of Manila, Inc. (AG&P), reported a remarkable growth of 7.3 times in first quarter net contributions from P15 million in 2009 to P110 million in 2010.