DMCI Holdings posts 3-fold increase in net income to P4.7 billion last year

MANILA, Philippines - DMCI Holdings Inc., the listed investment holding firm of the Consunji family, posted a net income of P4.7 billion last year, nearly three times the amount reported in 2008, on strong growth across all its business units.

In a financial report filed at the Philippine Stock Exchange, DMCI Holdings said revenues rose 39.6 percent to P29.71 billion while gross profit expanded 44.7 percent to P6.73 million.

Net contributions from Maynilad Water Services Inc., a joint venture with Metro Pacific Investments Corp., reached a record P1.66 billion compared with a meager P30 million the previous year. Maynilad’s net earnings jumped 41 percent to P2.82 billion due to higher billed volume and tariff rates.

Water operating efficiencies continued to improve as Maynilad reported a respectable increase of 11.3 percent in billed volumes, despite a slight dip in water supply. As a result, non-revenue water slid from last year as it reached an average of 59.67 percent.

DMCI’s general construction business unit, D.M. Consunji Inc., registered net contributions of P500 million or 2.5 times the P201 million recorded a year ago as construction works from new big-ticket projects worth P16 billion were started.

DMCI’s steel fabrication business, reported through 98-percent owned construction and steel fabrication company Atlantic Gulf and Pacific Co. of Manila Inc. (AG&P), reported a 51-percent growth in contributions from P193 million to P292 million. 

Early in 2008, the company was looking to sell AG&P but due to the current economic environment, the sale did not materialize. As a result, DMCI has decided to fully support AG&P in 2009, operationally and financially, hoping to renew and improve its business to become a fully contributing subsidiary. AG&P is the oldest construction company in the country with countless projects spanning over 100 years.

DMCI’s real estate business under DMCI Project Developers Inc. chipped in P1 billion in net profit, up 48 percent from the previous level as full completion of units for existing and new projects were realized. Housing sales jumped 48 percent to P6.96 billion, coming from Royal Palm, Tivoli Gardens and Ohana Place.

The group’s coal mining business, operated by now 58.8 percent-owned, Semirara Mining Corp., more than doubled its net earnings last year to P1.7 billion on the back of a 35 percent rise in sales volume. From 3.3 million metric tons in 2008, sales volume increased to 4.5 million metric tons last year as coal exports reached new highs. Coal revenues went up 37 percent to P11.6 billion from P8.4 billion.

“The global coal industry offers a vast potential for the company to expand its market and grow its business. Over the years, the growing demand for coal worldwide gave the company ample motivation to increase its capacity to create a niche in the export markets. Since it started exporting coal in 2007, export sales became the major growth driver for the company,” DMCI said.

Partnerships with new global coal traders pushed Semirara’s marketing efforts. With the help of these traders, the company was able to penetrate new markets, including Thailand, Japan, and Taiwan. Meanwhile, it continued its deliveries to India, China, and Hong Kong. With the expansion of its export markets, the company’s export sales had been increasing over the years.