DMCI nets P2.9B

MANILA, Philippines — Consunji-led engineering conglomerate DMCI Holdings Inc. saw a 26-percent year-on-year drop in first quarter net profit to P2.9 billion as the slump in coal prices and reduced power generation gnawed on the earnings contribution of Semirara Mining and Power Corp.

Excluding non-recurring items, DMCI’s core net income fell by 28 percent year-on-year to P3 billion, the company disclosed to the Philippine Stock Exchange.

A P91 million non-recurring item was booked in the first quarter to reflect the accelerated depreciation of Calaca units 1 and 2 while the one-time losses in the first quarter of 2018  priced in the accelerated depreciation of Calaca Units 1 and 2 (P167 million) and one-time refinancing costs of Maynilad (P72 million).

DMCI’s consolidated revenues from January to March dropped by 3 percent year-on-year to P19.7 billion, primarily due to lower coal prices and reduced power generation.

“All our other businesses did well in the first quarter but their combined results were not enough to mitigate the earnings slowdown of Semirara,” said DMCI chair and president Isidro Consunji.

Net income contribution from Semirara plunged by 49 percent year-on-year to P1.4 billion, owing to an 18-percent decline in the average selling price of coal and 21-percent drop in total power generation.

On the other hand, income share from construction arm D.M. Consunji Inc. rose by 7 percent year-on-year to P359 million due to higher accomplishment of its ongoing infrastructure projects.

Property development arm DMCI Homes contributed P481 million, a 5 percent improvement from restated first-quarter earnings of P460 million last year. The growth was attributable to lower cost of real estate development during the period while the restatement was due to the adoption of new accounting rules.

Earnings share from DMCI Power rose by 32 percent year-on-year to P100 million on the back of higher energy sales in Masbate, Palawan and Oriental Mindoro.

DMCI Mining posted a 129 percent year-on-year increase in net income contribution to P103 million as nickel ore shipments surged 118 percent to 338,000 wet metric tons.

Meanwhile, net income contribution from Maynilad Water Services jumped by 13 percent year-on-year to P436 million due to the combined effect of higher billed volume, a more favorable customer mix, inflationary adjustment on the basic charge beginning January 1, 2019 and tariff adjustment of 2.7 percent starting October 1, 2018.

Contributions from the parent company and other investments increased by 86 percent year-on-year to P69 million because of higher interest income.  (Editor: Mike U. Frialde)