DMCI nets P20 billion from January to September

MANILA, Philippines — Diversified conglomerate DMCI Holdings posted a nine-month income of P20 billion, a 28-percent decline from P27.6 billion a year ago, largely due to normalizing coal and nickel prices.

Consolidated core net income from January to September was also roughly the same due to a non-recurring gain of P2 million last year for the sale of a lot and a non-recurring loss this year of P27 million owing to foreign exchange losses and donations of affiliate Maynilad Water Services Inc.

DMCI Holdings chairman and president Isidro Consunji said the double-digit contractions in coal and nickel index prices due to China’s economic slowdown and global oversupply dampened the company’s nine-month earnings.

“However, our power businesses acted as significant buffers,” he said.

Contributions from SEM-Calaca Power Corp., Southwest Luzon Power Generation Corp.and DMCI Power all grew by double digits because of improved generation, sales volume and margins, DMCI Holdings said in its regulatory filing.

In the third quarter alone, DMCI Holdings recognized a consolidated net income of P4.1 billion, a 44-percent drop from P7.3 billion owing to lower contributions from subsidiaries Semirara Mining and Power Corp. (SMPC) and DMCI Mining.

In terms of contributions of each business segment, SMPC’s net income contribution receded by 37 percent to P12.8 billion during the nine-month period from P20.4 billion a year ago due to lower shipment and average selling prices, partly offset by higher power generation, sales and average selling price.

DMCI Homes, meanwhile, contributed P3.8 billion during the period, largely unchanged from last year, although better selling prices and higher income from sales cancellations cushioned the impact of lower percentage of completion.

Likewise, DMCI’s infrastructure unit D.M. Consunji Inc. recognized a 32-percent profit downswing to P459 million from P676 million due to the absence of new projects and completion of most infrastructure projects.

DMCI Mining saw its net income tumble by 48 percent from P1.1 billion to P569 million largely because of lower selling prices and higher costs.

On the other hand, DMCI Power contributed P632 million, a 15-percent increase from P549 million on the back of higher electricity sales volume, lower fuel costs and improved margins.