DMCI Holdings nearly doubles income to P4.18 billion in 1st half

MANILA, Philippines - DMCI Holdings Inc., the listed holding firm of the Consunji family, nearly doubled its net income in the first half of the year to P4.18 billion, mainly driven by first time contributions of its power generation business coupled with the steady growth of its construction, real estate and coal mining units.

“The significant first half for the Calaca power plant, the realization of works for the big ticket construction projects, the recognition of real estate sales, and the growing coal deliveries to both exports and domestic customers caused the steep growth in consolidated net income,” DMCI said in a report filed at the Philippine Stock Exchange,

Consolidated revenues amounted to P23.64 billion, up 96.7 percent from the P12.02 billion recorded the previous year. Of the total, P7.88 billion came from mining which was an increase of 24 percent from the year-earlier figure. Construction, on the other hand, accounted for P7.33 billion while   electricity sales chipped in P5.96 billion.

Sales from real estate, on the other hand, reached P2.4 billion, representing a 28.3 percent growth.

DMCI said the water business, under Maynilad Water Services Inc., reported a 19 percent drop in net contributions from P1.1 billion to P906 million as extraordinary items bloated 2009 amounts.

Water operating efficiencies continued to improve as Maynilad reported a 92 percent jump in first half core net income from P1.3 billion to P2.4 billion. Billed volume rose 9.5 percent while non-revenue water (NRW) slid from 60.9 percent to 55 percent.

The construction business almost tripled its net contributions for the period from P325 million last year to P945 million this year. Construction and engineering works for local buildings and domestic infrastructure projects added to the foreign steel fabrication contracts resulting in the huge increase.

The general construction unit, operated under wholly-owned and flagship construction company, D.M. Consunji Inc. (DMCI), contributed P616 million, more than double the P233 million recorded last year, as construction and engineering works from the elevated toll road project, Skyway, reached full activity.

DMCI’s steel fabrication business, under 98 percent-owned steel fabrication company, Atlantic Gulf and Pacific Co. of Manila Inc. (AG&P), reported a more than three-fold increase in net contributions from P92 million to P330 million. New projects, namely the BP Whiting - Coker project, accounted for P906 million of period revenues and significantly provided the much needed push in AG&P gross revenues.

Overseas manpower services, although slightly lower, continued to contribute significant revenues to AG&P, the oldest construction company in the country.

DMCI said the housing segment under the DMCI Homes brand contributed P764 million, 24 percent higher than the year before, on strong sales of Cypress Towers, Ohana Place, Rosewood Pointe, Royal Palm and Tivoli Gardens.

The group’s coal mining and power generation business under Semirara Mining Corp. plunked in P2.49 billion or more than more than three times the P721 million registered a year earlier, mainly due to the inclusion of the new Calaca power plant operations. The growth in coal deliveries, specifically coal exports likewise boosted Semirara’s bottom line.

DMCI’s nickel mining business, on the other hand, pumped in P128 million in contributions or nearly fives times that of the P22 million reported in 2009.   DMCI Mining was able to mine and sell 594,000 wet metric tons of nickel from only 106,000 last year.

The group’s venture into nickel mining was revived in 2010 when a mining contract with Benguet Mining was finalized early this year. DMCI Mining set out to mine and market relatively high concentration nickel ore at the Benguet nickel mine in Santa Cruz, Zambales.

As of end-June this year, DMCI’s total assets stood at P25.98 billion as against liabilities of P11.09 billion.