DMCI construction unit posts 36% profit growth
D.M. Consunji Inc., the construction arm of DMCI Holdings, grew its net profit in the first six months by 36 percent year-on-year to P676 million due to the increase in completed projects.
Six-month revenue rose by 13 percent year-on-year to P7.2 billion, driven by the performance of the building and infrastructure business units.
The increase in profit was brought about by higher gross profit percentage of the business units due to late approval of variation orders already accomplished in the previous period, DMCI said in a statement.
The buildings segment grew revenue by 48 percent year-on-year in the first semester as more projects were completed versus last year. Better performance is expected from this unit given its ongoing projects, as well as newly-awarded projects that will commence later this year.
DMCI is confident these developments will further strengthen its portfolio in the coming year.
Infrastructure, on the other hand, suffered a dip in its revenue by 9 percent from a year ago due to delays brought about by right-of-way (ROW) issues. However, recent development on the availability of ROW is seen to help improve the company’s revenue for the rest of the year. Also, the ongoing bids and negotiations for privately-funded projects and the rollout of the government’s “Build Build Build” program are seen to help the company increase its order booking for next year.
The energy business unit generated higher revenue in the first semester compared to 2017 due to the commencement of the JG Summit Petrochemical expansion, which was awarded at the beginning of this year. The immediate resolution of government energy-related issues is seen to improve the order book of this unit.
The utilities and plants business unit also suffered a drop in revenue. —DORIS DUMLAO-ABADILLA
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.