Revenue of DMCI Power, construction arm rose in Q1

By VG Cabuag - May 23, 2018

https://businessmirror.com.ph/revenue-of-dmci-power-construction-arm-rose-in-q1/

OFF-GRID energy player DMCI Power Corp. posted double-digit sales growth of 17 percent in the first quarter of 2018, while construction firm DM Consunji Inc. saw its revenues rise by 11 percent on higher orders.

DMCI Power said its volume reached 63 gigawatt hours during the three-month period, up from 54 GWh generated in the same period last year.

Palawan recorded a sales volume of 28 GWh, a 29-percent surge from 21 GWh last year.

Masbate and Oriental Mindoro both showed a 9-percent uptick in dispatch, it said. From 22 GWh, the total sales volume in Masbate increased to 24 GWh, while Mindoro saw its dispatch improve, from 10 GWh to 11 GWh.

“The increasing electricity demand in our service areas is primarily driven by the growth in household consumption and entrepreneurial activities. This is supported by a reliable and adequate supply of electricity,” DMCI Power President Nestor D. Dadivas said.

“Our presence aids in sustaining the economic activities of these provinces,” he added.

The company was established in 2006 to provide sufficient and reliable electricity to areas not connected to the main transmission grid.

On a standalone basis, DMCI’s construction arm recorded a net income P335 million, from January to March, up 33 percent, from P251 million the prior-year quarter. The higher than expected performance is due mainly to accounting and work-related timing issues, which will normalize in the coming quarters.

“The strong domestic economy is driving the property-development sector, and we expect to bag more building contracts in the coming quarter. New plant projects will also boost our order book,” DMCI President Jorge A. Consunji said.

DMCI Holdings Inc.’s construction arm saw its first-quarter standalone revenues increase 11 percent year-on-year to P3.5 billion, from P3.1 billion last year, mainly driven by building contracts, as infrastructure projects suffered delays resulting from unresolved right-of-way issues.

Revenues from high-rise building projects surged 52 percent, from P1.1 billion to P1.7 billion, while infrastructure projects dipped 5 percent to P883 million compared to P930 million during the same quarter last year.

Plant and utilities contracts, meanwhile, dropped 32 percent, from P459 million to P313 million, while energy projects declined 18 percent to P199 million, from P244 million. Other project-support businesses slid 12 percent to P244 million compared to P276 million last year.