Mining units boost DMCI profit to double-digit growth

Manila Times.net

BY KRISTA ANGELA M. MONTEALEGRE Reporter

DMCI Holdings Inc. earnings grew by nearly two-thirds in the first quarter on account of an increase in commodity prices.

In a regulatory filing, the holding firm of the Consunji family reported a 61-percent increase in its net income in the first three months to P2.27 billion from P1.41 billion in the same period last year.

“For the quarter, mining was the main driver of the extensive growth of the company’s bottom figure due to higher coal prices and the improved operations in the direct shipping nickel ore business,” it said.

For the first three months of the year, the company’s revenues climbed by a tenth to P10.82 billion in the January to March period from P9.88 billion year-on-year.

The increase in sales was largely driven by subsidiary Semirara Mining Corp., which is 56-percent owned by DMCI Holdings. During the period, the former netted P739 million from its mining operations, more than double the P312 million it earned in the first quarter of 2010.

DMCI Mining Corp., the company’s nickel and metals mining firm, also recorded hefty gains of P197 million for the period compared to the P6 million in 2010 since operations in its Benguet mine in Zambales went full stream in April.

DMCI Holdings’ profits from DMCI Power Corp., which runs the 600-megawatt Calaca coal plant in Batangas, also grew nearly five-fold from P57 million to P262 million.

Net contributions of its water investment through Maynilad Water Services Inc., a joint venture with Metro Pacific Investments Corp., jumped 27 percent to P498 million from P391 million as water operating efficiencies and billed volume improved.

Higher realized housing sales lifted the company’s property development unit, DMCI Homes Inc., to a net income of P224 million, an improvement of 35.00 percent from the previous year’s P166 million because of the completion of four existing projects.

Of the holding firm’s units, however, construction arm D.M. Consunji Inc. posted a 7-percent decrease in earnings to P362 million from P390 million previously in the absence of additional projects worked on during the January to March period.

DMCI Holdings shares went up to P42.90 apiece on Thursday from P42.75 on Wednesday.