DMCI profit grew to P11.7B at end-Sept

Consunji-led engineering conglomerate DMCI Holdings Inc. grew consolidated net profit by 19 percent year-on-year to P11.7 billion due to stronger contributions from its coal mining, energy, real estate, construction and nickel mining businesses.

Taking out a one-time gain of P111 million from the sale of its 10-percent stake in Subic Water and Sewerage Co. last year, DMCI’s core net income for the nine-month period rose by 20 percent year-on-year to P11.7 billion.

For the third quarter alone, DMCI Holdings grew by 18 percent year-on-year to P4.1 billion.

“We expect the slowdown in our coal energy business to temper our growth in the last quarter. Operating costs will be higher due to higher stripping ratio. One of the power plants is also on shutdown, which will last until mid-December,” said DMCI Holdings chair and president Isidro Consunji.

“Earnings from our real estate business will also be weaker despite strong sales and reservation because we can only recognize revenues from projects once the collected payments reach our revenue recognition threshold,’’ he added.

DMCI chief financial officer Herbert Consunji said the conglomerate’s performance in the nine months to September was in line with the group’s growth expectations.

Isidro added the group’s results were also because of “exceptional” performance from Semirara Mining and Power Corp. on the back of high commodity prices, good production and a more robust energy business.

Semirara’s net income contribution rose by 21 percent year-on-year to P6.5 billion, spurred by a a 25-percent increase in coal prices and a 9-percent increase in energy sales.

On the real estate business, higher sales and reservations ramped up DMCI Homes’ net income by 59 percent year-on-year to P2.7 billion. The prior year’s results were restated to reflect the real estate firm’s shift in accounting policies.

Net income contributions from construction arm D.M. Consunji Inc. rose, too, by 16 percent year-on-year to P851 million.

DMCI Mining Corp., for its part, saw a 98-percent year-on-year jump in its net earnings to P117 million during the first nine months after cutting its operating costs.

Off-grid energy business DMCI Power Corp. booked a 5-percent year-on-year decline in profitability to P324 million.