DMCI Holdings profit up 12% to P7.9B

MANILA, Philippines - Consunji-led DMCI Holdings Inc. recorded a double-digit gain in its nine-month profit this year, driven by its coal mining, real estate and water distribution units.

In a disclosure to the stock exchange, DMCI said its income from January to September grew 12 percent to P7.9 billion from P7 billion a year ago.

DMCI said miner and power producer Semirara Mining Corp. suffered from a significant decline in its bottom line driven by lower coal prices and the power segment’s lower contributions as it rehabilitates a coal plant.

Specifically, coal mining’s nine-month profit fell 14 percent to P1.8 billion from P2.1 billion last year while income from electricity slipped six percent to P944 million from P1 billion.

But the performance of Maynilad Water Services Inc. and DMCI Homes carried the company.

“Significant growth displayed by the construction and real estate segments along with sustained improvements in the water and nickel businesses resulted in an increase in consolidated net income after non-controlling interests,” DMCI said.

The real estate business posted a 47-percent surge in earnings to P1.83 billion from P1.25 billion while income from the water distribution business grew 21 percent to P1.867 billion from P1.549 billion.

Nickel mining contributed P449 million to DMCI, up from P361 million last year while the construction business’ income jumped 27 percent to P962 million from P756 million.

Last month, subsidiary DMCI Mining Corp. signed a memorandum of understanding with Toledo Mining Corp. Plc to acquire TMC’s 31-percent stake in the Berong nickel project in Palawan for $6.552 million.

The Berong mine’s resource is estimated at 9.92 million tons of laterite ore at a 1.55-percent nickel grade as of June 2007.

DMCI also has a minority stake in the San Miguel Corp. controlled Private Infrastructure Development Corp., the firm that will build the P18-billion, 88-kilometer Tarlac-Pangasinan-La Union Expressway.