DMCI earns P4.3 B in Q1, sets P40.6-B capex

Published May 15, 2018, 10:00 PM By James A. Loyola

https://business.mb.com.ph/2018/05/15/dmci-earns-p4-3-b-in-q1-sets-p40-6-b-capex/

Diversified engineering conglomerate DMCI Holdings, Inc. is increasing its capital expenditure (capex) budget to P40.6 billion this year from the P34 billion spent in 2017 even as it posted higher earnings in the first quarter of 2018.

In an interview after the firm’s annual stockholders’ meeting, DMCI Chairman Isidro A. Consunji said capex excluding Maynilad Water Services, Inc. will amount to P31.5 billion compared to P20.19 billion last year.

The biggest share of this year’s capex amounting to P16 billion will go to DMCI Homes, Semirara Mining and Power Corporation will get P13 billion, while DMCI Power will be allotted P2 billion.

DMCI registered a 5 percent increase in first-quarter earnings to P4.3 billion from P4.1 billion the previous year. Higher coal prices, water billed volume and construction revenues accounted for the upturn.

Consolidated revenues during the same period grew 8 percent from P18.8 billion to P20.3 billion.

“Our power generation business suffered some setbacks this quarter because of the unplanned outages of Sem-Calaca Power Corporation and Southwest Luzon Power Generation Corporation,” said Consunji.

He added though that, “we believe that higher coal sales and average selling prices will more than offset the impact of these outages on our bottom line.”

SMPC recorded a 3 percent increase in net income for the first three months of the year from P4.4 billion to P4.6 billion, owing to a 24 percent increase in the average selling price of coal.

Consequently, SMPC’s first quarter net income contribution to DMCI rose 3 percent from P2.5 billion to P2.6 billion.

Net income share from DMCI Homes declined 11 percent to P848 million from P950 million during the same period last year due to a slowdown in revenue recognition.

Meanwhile, net income contribution from Maynilad jumped 12 percent from P282 million to P315 million, primarily driven by higher billed volume coupled with a 2.8 percent inflationary rate adjustment on its basic charge beginning January 1 this year.

D.M. Consunji, Inc. posted an 85 percent surge in net income share due to the realization of variation orders from projects nearing completion. From P182 million in the prior year quarter, its contribution to the Parent rose to P336 million.

Earnings contribution from off-grid energy business DMCI Power fell 12 percent from P87 million to P76 million attributable mainly to the lower-than-expected provisional tariff granted to its Aborlan power plant in Palawan.

Shipment of higher grade nickel from old stockpile and lower depreciation costs allowed DMCI Mining to deliver strong growth in the first three months of the year. Its net income contribution grew by 41 percent year on year from P32 million to P45 million.