Commodity prices, power pushed DMCI Q1 income to record high

The Consunji family-led conglomerate DMCI Holdings Inc. recorded its “highest ever” quarterly profit at end-March this year after soaring commodity prices boosted earnings of its subsidiary, Semirara Mining and Power Corp.

In a statement on Wednesday, the listed holding company said net income during the quarter jumped 165 percent to P11.3 billion from P4.3 billion in the same period last year.

DMCI benefited from the rising prices of coal and nickel amid the Russian invasion of Ukraine and better power earnings.

Income contribution from Semirara Mining and Power was up 544 percent to P8 billion during the quarter. This accounted for 70 percent of DMCI’s earnings during the period.

Inflationary pressures

DMCI chair and president Isidro Consunji said inflationary pressures, however, contributed to the slowdown of its property and construction businesses.

“Semirara exceeded our expectations while DMCI Mining and DMCI Power both grew double digits,” Consunji said.

“But our construction and real estate businesses are showing signs of slowdown because of knock-on effects of the pandemic and the Russia-Ukraine war,” he added.

DMCI Homes’ contributions dropped 7 percent to P1.4 billion. Construction arm D.M. Consunji Inc. also recorded a 7-percent drop in net income contribution to P367 million “mainly due to the absence of a one-time related party transaction for a joint venture infrastructure project.”

Meanwhile, income from DMCI Mining rose 20 percent to P499 million on higher nickel shipments and favorable foreign exchange earnings.

DMCI Power contributed P132 million, a 12-percent upturn on better sales across service areas.

DMCI also owns a stake in Metro Manila water concessionaire Maynilad Water Services, whose income contribution went up 11 percent to P319 million mainly due to lower expenses.

—Miguel R. Camus