DMCI H1 profit jumps 21%

Consunji-led engineering conglomerate DMCI Holdings Inc. (DMCI) grew its first semester net profit by 21 percent year-on-year to P9.2 billion on higher earnings from its coal mining, real estate, construction, nickel mining and water businesses.

Excluding a P715-million one-time gain from the sale of an undeveloped lot by DMCI Homes and P69 million one-time refinancing cost of Maynilad Water, the core net income of DMCI Holdings in the first half grew 10 percent to P8.6 billion from P7.8 billion a year ago.
For the second quarter alone, DMCI posted P5 billion in profit, up 38 percent year-on-year as consolidated revenue rose by 31 percent to P23.9 billion. Core net income during the quarter grew by 16 percent year-on-year to P4.2 billion.

Consolidated revenue in January to June hit P44.2 billion, up by 19 percent from the the same period last year.

“All of our businesses fared well except for our power subsidiaries. The unplanned and prolonged outages of Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp. cut into the profitability of Semirara Mining and Power Corp.,” said DMCI chair and president Isidro Consunji.

Two power generation units of Semirara in Calaca, Batangas, had gone off-line due to unplanned maintenance and repairs in March, coinciding with the outage of two other plants for scheduled maintenance. But one of the units will be back online this week while the other will resume operation by the middle of September, Consunji said.

As such, he said in a briefing on Monday that earnings of the power business should normalize by the fourth quarter.

Nevertheless, Semirara posted a 3-percent year-on-year increase in net income contribution in the first half to P4.6 billion as higher coal sales and coal prices made up for the interruption in the power generation business.