DMCI nets P3.1B in Q1, aims for P12.66B profit for 2015

CONSUNJI-led engineering conglomerate DMCI Holdings Inc. grew its first quarter net profit by 18 percent year-on-year to P3.1 billion driven by the robust performance of its power, real estate and water businesses.

For the full year, DMCI expects core earnings to reach P12.66 billion, 23 percent higher year-on-year.

In the first three months, income contribution from Semirara Mining and Power reached P1.4 billion, rising by 24 percent from the same period last year. The upswing was due to the strong business performance of its power generation segment.

For the full year, Semirara is expected to chalk up P5.35 billion in net profit, 32 percent higher year-on-year.

Next to Semirara, the second largest contributor to DMCI’s net income in the first quarter was real estate arm DMCI Homes, which saw an 11-percent hike in net profit to P845 million. DMCI Homes recognized revenues from completed high-rise projects in the first quarter. Excluding the effect of a gain on sale of undeveloped lot in the comparative period last year, the real estate firm’s net income actually rose by 77 percent during the said period.

DMCI Homes is projected to post P3.6 billion in net profit for the full year, sustaining a 11 percent growth.

The third largest contributor, Maynilad Water Services Inc., continued to benefit from its improved operational efficiency, jacking up net earnings contribution by 10 percent year-on-year to P545 million. This unit is expected to contribute P2.15 billion to DMCI for the full year, 5 percent higher year-on-year.

Earnings from construction arm D.M. Consunji, Inc. rose by 22 percent year-on-year to P196 million due to higher revenues from its infrastructure projects. This unit is projected to deliver P755 million in net profit contribution for the full year, 58 percent up from last year.

The off-grid power business, lodged under DMCI Power, reported a 42 percent increase in net income to P74 million in the first quarter due to higher energy dispatch to the electric cooperatives from the power plants in Masbate and Palawan.

For the full year, DMCI Power is projected to deliver P370 million in net profit, 52 percent higher year-on-year.

Meanwhile, DMCI Mining reported net loss of P24 million due to the weak global nickel ore price and normally reduced mining operations during the early parts of the year. Mining activity is expected to ramp up production and shipments by second quarter of this year. 

For the full year, DMCI Mining is expected to post P438 million in net profit, 21 percent better than the level in the previous year.