DMCI nets P7.6B

DMCI Holdings president Isidro Consunji:
PHOTO FROM DMCIRESIDENCES.COM

Consunji-led conglomerate DMCI Holdings grew its first semester core net profit by 21 percent year-on-year to P7.6 billion on higher earnings from its mining, power, real estate and construction businesses.

Including a one-time gain of P111 million from the partial divestment of its stake in Subic Water in March 2016, DMCI’s headline net profit rose by 19 percent year-on-year, the company said in a press statement.

“We had a very good first half. Our performance in the second half will likely be more modest due to the higher strip ratio of SMPC (Semirara Mining and Power Corp.) compared to the first half,” said DMCI Holdings chair and president Isidro Consunji.

In mining, strip ratio refers to the amount of waste material that must be moved in order to extract a given amount of ore.

“Majority of the new DMCI Homes projects are also scheduled for launch in the second half. However, we can only recognize revenues from these new projects once the collected payments reach our revenue recognition threshold. But I think we are on track to achieve our full-year target of double-digit growth,” Consunji said.

SMPC’s six-month consolidated net profit rose by 24 percent year-on-year to P7.9 billion. The 4-percent drop in coal sales volume was offset by the 28-percent increase in average coal prices. Energy generation increased by 12 percent, further boosted by a 12-percent uptick in electricity prices. Net income contribution to DMCI amounted to P4.5 billion, up by 24 percent year-on-year.

Net profit contributed by DMCI Homes surged by 78 percent year-on-year to P1.6 billion in the first six months on higher revenues from residential development projects.

Construction arm DM Consunji, on the other hand, increased net income contribution by 25 percent year-on-year to P497 million in the first half due to the higher percentage of completion of ongoing projects and lower operating costs.

DMCI’s off-grid energy supplier DMCI Power, nickel mining arm DMCI Mining and affiliate Maynilad Water contributed lower earnings in the first half.

DMCI Power contributed P228 million, 5 percent less year-on-year, mainly due to the expiration of its income tax holiday for its Masbate operations.

Despite its protracted mining suspension, DMCI Mining remained profitable as the increase in average selling price of nickel allowed it to generate earnings from its stockpile. This allowed the company to contribute P54 million in net profit to parent conglomerate, albeit 5 percent less than its contribution in the same period last year.

Meanwhile, Maynilad Water reported a 31-percent year-on-year drop in equity income contribution to P759 million as delays in the implementation of the rate rebasing tariff continued to gnaw on earnings.