CONSUNJI-led engineering conglomerate DMCI Holdings Inc. saw a 5 percent year-on-year drop in first semester net profit to P6.2 billion due to a decline in earnings contributed by the real estate, water utility and nickel mining businesses.
Excluding the one-time gain on sale of 10 percent stake in Subic Water, the core net income of DMCI Holdings declined by 7 percent year-on-year to P6.1 billion.
“Since last year, we have been anticipating an earnings slowdown in DMCI Homes because of the deferred recognition of revenues from its completed high-rise projects. The expiration of Maynilad’s income tax holiday in 2015 also affected our bottom line,” explained DMCI Holdings chair and president Isidro Consunji said in a press statement.
DMCI Homes contributed P708 million in earnings for the first six months, down by 59 percent year-on-year. Although it registered higher sales and reservations during the first six months, its deferred recording of accounting revenues weighed down overall profitability.
Net income contributions from Maynilad Water Services Inc. fell by 4 percent to P1.1 billion. The 4-percent year-on-year increase in billed volume and the 5-percent increase in average effective tariff muted the impact of the fresh tax burden.
Meanwhile, depressed nickel prices and reduced shipments gnawed on the performance of nickel mining arm DMCI Mining Corp. during the first six months. Attributable net income from DMCI Mining slid by 87 percent year-on-year to P57 million.
On the other hand, the coal mining/power generation, construction and off-grid energy businesses contributed higher earnings to the conglomerate.
Net income contribution from Semirara Mining & Power Corp, jumped by 34 percent to P3.6 billion as a result of higher coal exports and additional revenue from its new power plant, Southwest Luzon Power Corp.
Construction arm DM Consunji Inc. booked a 19 percent increase in net earnings during the first half of the year to P397 million as cost overruns for a power plant project were fully recognized in 2015.
Off-grid energy supplier DMCI Power Corp. contributed P241 million in net earnings, rising by 12 percent year-on-year due to the commercial operations of its 15-megawatt power facility in Calapan, Oriental Mindoro.