DMCI Holdings H1 profit up 28% to P6.6B

Manila Bulletin
by James Loyola
August 18, 2015 (updated)

DMCI Holdings, Inc. (DMC) recorded a 28 percent jump in consolidated net income to P6.6 billion in the first six months of 2015 from the P5.1 billion earned in the same period last year.

In a press briefing, DMCI chairman Isidro Consunji said the marked increase was due to the strong profit contributions of the firm’s real estate, power, nickel mining and water distribution businesses.

“We delivered a good first half performance and remain on track to meet our profit guidance of P12 billion,” said Consunji. Consolidated EBITDA rose by 44 percent to 13 billion from P9 billion the previous year.

Net income contributions from Semirara Mining and Power Corporation jumped 78 percent to P2.7 billion compared to P1.5 billion during the same period last year. This was due to the strong rebound of its power generation segment.

Gross power generation surged 143 percent to 2,165 GWh from 893 GWh while cost of power sales decreased 25% to P3.7 billion from P5.0 billion. With its power units operating reliably this year, SMPC was able to revert to its normal costs levels.

Higher billed volume and improved operational efficiency pushed profit contribution from affiliate Maynilad Water Services to grow 22 percent from P943 million to P1.1 billion.

DMCI Mining contribution was up by 24 percent from P365 million to P454 million due to higher volume of nickel shipments.

Profit contribution from DMCI Power expanded by 72 percent to P215 million from P125 million last year. Commercial operations of its new 15MW bunker fired power plant in Oriental Mindoro accounted for the significant growth.

Earnings from D.M. Consunji, Inc. declined 44 percent to P333 million due to slowdown in infrastructure project accomplishment and lower variation orders.

The slowdown was due to right-of-way and utility relocation issues. Meanwhile, approved variation orders booked during the first half reached P170 million compared to P390 million last year.

Contribution from the Parent and other investments grew by 198 percent to P52 million during the same period.

DMCI Homes contributed P1.72 billion, a 4 percent increase due to the recognition of higher revenues from completed high-rise projects in the first six months. source