DMCI bags P11.7B construction projects
The construction arm of DMCI Holdings bagged P11.7 billion worth of new contracts to construct infrastructure, energy, buildings, utilities and plants in the first semester, 169 percent higher than the value of projects signed in the same period last year.
The additional projects in the order book is an indication of the kind of revenues that premiere construction firm D.M. Consunji Inc. (DMCI) can recognize in the next year or two as these projects are executed. For the whole of last year, DMCI bagged a total of P20 billion worth of projects.
With the newly-signed contracts, the order book of DMCI now sums up to P26.8 billion, 4 percent lower than the P27.9 billion order book in the same period last year.
Among DMCI’s newly-signed projects are the Cavite-Laguna Expressway project of MPCALA Holdings, Inc., the 62-storey Anchor Grand Suites of Anchor Land, the Bued Viaduct and Roadway of Private Infra Dev Corporation, the LRT 2 East (Masinag) Stations under the Department of Transportation, and the civil works for a thermal power plant for engineering procurement and construction contractor JGC Philippines, DMCI announced in a press statement.
Meanwhile, major ongoing projects include Sections 1 and 2 of the Metro Manila Skyway Stage 3 project of Citra Central Expressway Corporation, Citygate mixed-use development of Ayala Land, The Royalton and Imperium luxury condominiums of Ortigas & Co., The Areté of Ateneo de Manila University and NCCC Mall of LTS Malls, Inc.
On a stand-alone basis, DMCI recorded a net income P630 million during the first semester, a 65 percent improvement from P393 million during the same period last year. This was due mainly to improved operational efficiencies and lower construction costs among its business units.
“We are seeing some uptick in infrastructure projects but the construction growth is still primarily driven by the private sector. Hopefully, more government-led projects will go online this year,” said DMCI president and chief executive officer Jorge Consunji.
Based on data from the Construction Industry Authority of the Philippines, government infrastructure investments increased by 29 percent to P185 billion last year, as the public sector moved to fast track the implementation of infrastructure projects under the Aquino and Duterte administrations. Meanwhile, private construction activities accelerated by 9.5 percent to P596.9 billion due to the increased demand for high-rise residential and commercial buildings.
Overall, 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.
Construction arm DM Consunji, for its part, 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 alongside lower operating costs.
For the second quarter alone, DMCI Holdings net profit amounted to P3.65 billion versus P3.4 billion in the same quarter last year.
