DMCI income trimmed by 34% to P1.9 billion in Q3

Iris Gonzales (The Philippine Star ) - November 11, 2020 - 12:00am
https://www.philstar.com/business/2020/11/11/2055952/dmci-income-trimmed-34-p19-billion-q3

MANILA, Philippines — DMCI Holdings Inc. (DMCI) reported a drop in its third quarter and nine month net income as businesses weakened during the period because of the impact of COVID-19.

Third quarter net income declined by 34 percent to P1.9 billion, while nine-month net income slowed down by 58 percent to P3.9 billion.

The Consunji-owned listed conglomerate attributed this to weak contributions from its integrated energy, construction and water businesses.

DMCI Holdings chairman and president Isidro Consunji said Semirara Mining and Power Corp. and DMCI were hit hardest by the COVID-19 pandemic.

“We saw sharp drops in demand and prices for both coal and electricity because of the economic slowdown,” Consunji said.

“Construction earnings deteriorated because of lower productivity and extraordinary expenses related to the coronavirus,” he said.

Excluding non-recurring items, core net income for the third quarter slipped 27 percent to P1.9 billion.

Real estate arm DMCI Homes accounted for 55 percent of the consolidated profits as its third-quarter contributions surged 70 percent year-on-year to P1 billion.

Excluding P592 million in losses from sales cancellations for a DMCI Homes project, core net income declined by 52 percent from P9.3 billion to P4.5 billion. Consolidated revenues contracted by 33 percent to P43.9 billion from P65.9 billion.

By business segment, Semirara Mining’s nine-month net income plunged by 64 percent to P1.7 billion largely due to anemic market conditions and the imposition of coal import quotas in China last August.

DMCI Homes contributed P1.1 billion core income during the period, down 40 percent because of lower revenues due to the imposition of lockdowns which slowed down construction productivity.

D.M. Consunji Inc. booked a nine-month net loss of P97 million from a net income of P664 million because of expenses related to COVID-19, lower construction accomplishments due to the lockdowns and higher costs due to right-of-way issues for infrastructure projects.

Contributions from affiliate Maynilad fell 22 percent to P1.2 billion owing to lower commercial sales and average effective tariff, aggravated by higher amortization and depreciation expenses.

On the other hand, DMCI Power posted an 18-percent growth in earnings contributions to P403 million

from P341 million on the back of higher electricity sales and upward tariff adjustment for its Aborlan

power plant.

DMCI Mining’s income contributions rose 190 percent to P252 million.