DMCI raises 2021 capital expenses by 48% to P42B

posted March 21, 2021 at 07:00 pm by Jenniffer B. Austria
https://manilastandard.net/business/corporate/350016/dmci-raises-2021-capital-expenses-by-48-to-p42b.html

DMCI Holdings Inc. said over the weekend it will allot up to P41.7 billion in 2021 capital expenditures, up 48 percent from P28.2 billion it spent in 2020.

DMCI said in an investors’ briefing real estate unit DMCI Homes would account for the bulk of this year’s capital spending amounting to P18.6 billion.

Maynilad Water Services Inc. will spend P14.8 billion this year, nearly double the P7.7-billion allocation last year.

DMCI also earmarked P4 billion for the expansion of power generation and coal businesses under Semirara Mining and Power Corp., while DMCI Power will get P2.4 billion for 2020.

Construction unit D.M. Consunji Inc. budgeted P1.7 billion in capital expenditures while the remaining P200 million will be spent by DMCI Mining Corp.

Excluding capital expenditures for Maynilad, DMCI’s capital expenditures for this year would still be higher by 33 percent.

DMCI said it was expecting profits to return to pre-pandemic levels this year on the back of higher construction accomplishments and strong demand for coal, electricity and nickel.

The group said, however, SCC and Maynilad may continue to face headwinds this year.

DMCI Homes plans to launch 14 projects, including new formats while its construction firm is looking to participate in 18 infrastructure projects.

SCC expects to resume regular coal production by the second quarter of the year, while DMCI Power plans to invest in thermal and solar plants in Palawan and Masbate.

DMCI Mining is securing new mining permit as Berong mine will be depleted by year-end.

DMCI posted a net income of P5.9 billion in 2020, down 44 percent from P10.5 billion in 2019, because of the strict quarantine restrictions and economic impact of the COVID-19 pandemic.

Excluding non-recurring losses of P1.9 billion mostly coming from one-time non-cash goodwill impairment charge for its Zambales mining assets in 2019 and P708 million pertaining mainly to sales cancellations for a real estate project in 2020, core net income fell 47 percent year-on-year to P6.6 billion from P12.4 billion.