Organic expansion seen driving DMCI’s continued growth

MANILA, Philippines — Diversified engineering conglomerate DMCI Holdings is looking at several prospects for organic expansion across its various business units to drive the group’s continued growth over the short and medium-term.

Speaking during the company’s annual stockholders’ meeting yesterday, DMCI chairman and president Isidro Consunji said the group’s property arm DMCI Homes is expanding its leisure development portfolio with the launch of Moriyama Nature Park in Laguna later this year.

He said the premium Japanese onsen-inspired project destination is designed to tap into the rising demand for domestic tourism among Filipino families and travelers.

Beyond leisure, Consunji said that DMCI Homes is also set to broaden its product offerings by expanding beyond its core Metro Manila and mid-income markets to cater to a wider range of buyers.

“Upcoming launches will be more geographically diverse, to reach emerging cities outside the NCR, tapping into upscale markets and introducing more affordable options, while maintaining the signature DMCI Homes quality,” he said.

Consunji said that DMCI’s integrated construction arm, D.M. Consunji Inc., is actively pursuing large-scale industrial, building and government infrastructure project opportunities to sustain its order book.

“Throughout the year, we’ve seen an increase in bid invitations and we remain optimistic about the outcomes of our submissions. Our debt-free balance sheet also gives us the financial flexibility to seize opportunities, particularly as the Philippine government ramps up infrastructure investments,” he said.

For its mining business, Consunji said that DMCI is advancing the exploration and permitting of its pipeline assets as well as exploring the feasibility of a value-added processing plant in partnership with Nickel Asia and other potential nickel miners and investors.

This year, he said DMCI Mining is seeing improved production prospects in Zambales, with a capacity of two million wet metric tons.

“We are also cautiously optimistic about Palawan, pending the issuance of the necessary permits and approvals for the Long Point mine,” he said.

Semirara Mining and Power Corp. (SMPC), meanwhile, is revisiting its plans for the 2x350-megawatt (MW) St. Raphael Power Generation project to help meet the country’s growing baseload energy needs in the medium term.

Consunji said that DMCI Power is targeting a 26-percent increase in capacity this year, which will bring its total to over 200 MW installed capacity.

He said DMCI Power’s 15-MW bunker-fired plant in Palawan started operations in March, while the Semirara Wind Project is scheduled to go live this second quarter.

“DMCI Power is, likewise, actively exploring opportunities through competitive selection processes that align with government initiatives to broaden energy access in the off-grid communities,” Consunji said.

Overall, Consunji said that DMCI is cautiously optimistic about the operating performance of the group in the short and medium-term.

Across its businesses, he said the group is most optimistic about Maynilad, DMCI Power, DMCI Mining and the power segment of SMPC.

According to Consunji, Maynilad is expected to perform well with rising water demand, tariff adjustments and continues improvements in non-revenue water, following sustained investments in water and wastewater infrastructure.

He said that DMCI Power, on its end, is positioned to benefit from growing electricity demand in off-grid areas.

For DMCI Mining, the group sees upside from the recovery in nickel ore prices and the start of commercial operations at the Zambales Chromite Mining Co.

SMPC’s power segment, meanwhile, is expected to deliver stronger results with the full-year operation of SCPC Unit 2 at 300 MW, along with improved power availability across the board.

“Our priorities will remain focused on disciplined execution, cost control, and maximizing synergies within our ecosystem—especially with the recent addition of our cement business,” Consunji said.