DMCI 1st half profit falls by 69% | Inquirer Business

DMCI 1st half profit falls by 69%

By: - Business Features Editor / @philbizwatcher
/ 04:03 AM August 12, 2020

Consunji-led DMCI Holdings posted a 62-percent year-on-year decline in second-quarter net profit to P1.4 billion as the lockdown of Metro Manila and other key regions battered most businesses.For the first semester, net profit amounted to P2 billion, down by 69 percent year-on-year as revenues from coal mining/power, property development, construction and water businesses all dropped at double-digit pace.

“Most of our businesses showed resilience during the lockdown period since they belong to essential industries like power, mining and water distribution,” said DMCI Holdings chair and president Isidro Consunji.“Semirara, DMCI Power, DMCI Mining and Maynilad remained profitable in the first and second quarters. Unfortunately, we were severely affected by the low market prices,” he explained.

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Excluding nonrecurring items, core net income in the second quarter declined by 59 percent year-on-year to P1.6 billion, bringing core net income from January to June to P2.6 billion, down 61 percent year-on-year.

First-semester core net income contributions from Semirara Mining and Power Corp. fell 64 percent year-on-year to P1.3 billion as coal sales and average selling price slumped by 27 percent and 21 percent, respectively. Semirara’s power segment also sustained sharp declines, with electricity sales and average selling price falling by 10 percent and 32 percent.

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DMCI Homes contributed core earnings of P38 million to the parent company, marking a 97-percent decline from P1.2 billion as quarantine restrictions dragged down construction accomplishments and, consequently, revenue recognition.

Earnings from construction arm DM Consunji Inc. contracted by 79 percent year-on-year to P92 million due to the 76-day lockdown and staggered workforce buildup that curbed productivity and revenue recognition.

On the other hand, off-grid energy supplier DMCI Power contributed P256 million in earnings, a 10-percent year-on-year jump, owing to higher energy sales in Palawan alongside lower fuel costs.

Attributable net income from DMCI Mining improved by 6 percent to P184 million on the back of a 25-percent increase in nickel ore exports. INQ

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