DMCI posted P6.6B net income as of end-June

Consunji-led conglomerate DMCI Holdings expects to be on track to end the year with a core net profit of P12 billion, about 11 percent higher than the previous year, on strong contribution from its real estate, power, mining and water distribution units.

In the first semester, DMCI grew its net profit by 28 percent year-on-year to P6.6 billion, DMCI president Isidro Consunji said in a briefing on Tuesday.

Consunji said the company had yet to quantify how much the suspension of coal mining operations in Antique would affect full-year earnings. At present, he said subsidiary Semirara Mining & Power Corp. was working with the government to resolve the remaining issues after a portion of the Panian mine in Antique collapsed on July 17 after two weeks of heavy rain.

He said the group hoped that the Department of Energy would clear the mine for reopening soon. Earlier, the Department of Environment and Natural Resources restored Semirara’s environmental compliance certificate.

For the first six months, DMCI said revenues had risen by 3 percent year-on-year to P30.5 billion while consolidated cash flow as measured by earnings before interest, taxes, depreciation and amortization had expanded by 44 percent year-on-year to P13 billion.

“We delivered a good first half performance and remain on track to meet our profit guidance of P12 billion,” Consunji said.

Net income contribution from Semirara increased by 78 percent year-on-year to P2.7 billion due to the strong rebound of its power generation segment.

By the third quarter of this year, Semirara will have 262 megawatts of additional sellable power generation capacity. Once operations stabilize starting 2016, these two new power plant units are expected to generate P7.5 billion in revenues and P2 billion in net profit.

Assuming just a 30-day suspension of operations, the financial impact on Semirara is seen minimal. On the other hand, the onset of the El Niño dry spell is seen giving Semirara some leeway compared to previous years as the dry weather can potentially allow more days of mining operations.

Residential unit DMCI Homes contributed P1.72 billion in earnings for the first semester, rising by 4 percent year-on-year. Excluding the impact of a gain on sale of undeveloped lot last year, the company’s net income rose by 18 percent year-on-year.

Meanwhile, higher billed volume and improved operational efficiency boosted profit contribution from Maynilad Water Services by 22 percent year-on-year in the first six months to P1.1 billion.

Profit contribution from DMCI Power—the unit that handles off-grid power businesses—grew by 72 percent year-on-year to P215 million in the first six months. Commercial operations of its new 15-MW bunker-fired power plant in Oriental Mindoro accounted for the significant growth.