DMCI Holdings sees 2014 earnings at P10 B

SCREENGRAB from www.dmciholdings.com

MANILA—DMCI Holdings sees core earnings reaching P10 billion this year, at least reprising last year’s level, on a mixed bag of outcomes from various subsidiaries.

This year’s outlook factors in the reduced equity stake in Maynilad Water Services Inc., a decline in earnings from power due to rehabilitation work during the first half, and slower contribution from construction due to stiff competition and delays in the awarding of big-ticket infrastructure projects, DMCI president Isidro Consunji told reporters after the company’s annual stockholders meeting on Tuesday.

However, DMCI sees a much better year for coal mining this year versus last year alongside higher contribution from real estate and the newly acquired nickel mining businesses, he said.

Based on first semester results, DMCI is on track with this core earnings goal of P10 billion, said DMCI chief finance officer Herbert Consunji.

DMCI is expecting to generate P2.3 billion from its share in Semirara Mining’s coal mining business and another P1.6 billion from its power business.

From the water business, DMCI expects to book equity earnings of P2 billion out of Maynilad Water Services Inc.’s likely earnings of P8 billion this year.

The construction business is seen to contribute P700 million this year, lower than last year’s P1.3 billion. Once more big-ticket projects are awarded, the contribution of this segment will likely rebound by next year, Isidro Consunji said.

The real estate business is expected to contribute P2.8 billion to P3 billion, about 15 percent higher than the level a year ago.

Meanwhile, the newest business segment— nickel mining— is expected to contribute around P500 million this year from almost nothing last year.