DMCI posts 20% profit growth

Consunji-led conglomerate DMCI Holdings posted a 20-percent growth in core net profit last year to P12.3 billion on strong earnings from its power generation, property, water and construction businesses.

“Our growth was driven by the strong performance of all our investments. Despite weak commodity prices and project execution delays, we were able to meet our profit guidance for the year,” said DMCI chair and president Isidro Consunji.

Including nonrecurring items, DMCI’s consolidated net income rose by 19 percent to P12.8 billion last year.

This was as the conglomerate booked a P530-million one-time gain on the sale of its 25-percent share in Private Infra Dev Corp., the project proponent and operator of the Tarlac-Pangasinan-La Union Toll Expressway (TPLEx).  The stake in the tollroad was sold to San Miguel Corp.

Higher profits from energy generation fueled an 18-percent increase in net income contribution from Semirara Mining and Power Corp. to P4.8 billion last year.

As middle-income developer DMCI Homes recognized revenues from previous sales of completed high-rise projects, its net income contribution improved by 11 percent to P3.6 billion. Excluding the effect of a gain on the sale of an undeveloped lot in 2014, net income actually rose by 18 percent compared to last year.

On the water utility business, continued improvement in operational performance and a 4-percent increase in billed volume in 2015 pushed net earnings contribution of affiliate Maynilad Water Services Inc. to grow by 17 percent to P2.3 billion.  DMCI has a 25.24-percent economic interest in Maynilad.

Better gross profit margins from ongoing projects in 2015 drove the net income contributions of D.M. Consunji Inc. to P628 million, up 35 percent from the previous year.

Net income contribution from DMCI Mining Corp. expanded by 38 percent to P501 million. Higher sales volume and streamlined operating costs helped mitigate the impact of declining nickel ore prices on the company’s bottom line.

Meanwhile, off-grid energy supplier DMCI Power Corp. contributed P382 million, a 57-percent improvement from the previous year. The surge was attributed to the increased energy dispatch of its power plants in Palawan, Masbate and Oriental Mindoro.