DMCI sets record Q2, H1 earnings
Diversified engineering conglomerate DMCI Holdings recorded its highest-ever second quarter and first half net income as all its subsidiaries delivered strong growth during said reporting periods.
From April to June, DMCI Holdings’ consolidated profit soared by 73 percent to P9 billion from P5.2 billion largely driven by higher coal, electricity and nickel prices, coupled with higher revenue recognition from its real estate business.
Core net income during the same period grew 113 percent to P9 billion from P4.2 billion, after excluding nonrecurring gains of P37 million this year and P1 billion last year relative to the remeasurement of deferred tax liabilities as a result of CREATE law.
With back-to-back historic quarterly earnings, DMCI Holdings more than doubled its first-half bottom line to P20.3 billion from P9.5 billion, an increase of 114 percent, outperforming its 2021 full-year net income of P18.4 billion.
Excluding minimal nonrecurring gains this year (P36 million) and P1.2 billion last year due to CREATE law, its core net income from January to June surged by 144 percent from P8.3 billion to P20.3 billion.
“We had a very strong first half because of elevated market prices. If the current trend holds till October, we hope to declare another round of special dividends for our shareholders before year-end,” said DMCI Holdings chair and president Isidro A. Consunji.
Last April, DMCI Holdings declared special dividends of 14 centavos per share on top of regular cash dividends in the amount of 34 centavos per share.
Contribution breakdown
SMPC contributions accelerated by 161 percent from P2.3 billion to P6.1 billion on the back of all-time high average coal selling prices and higher spot sales volume amid elevated market prices.
DMCI Homes contributed P1.3 billion, 63 percent better than the P804 million recorded last year owing to higher revenue recognition from ongoing projects and upward adjustment in selling prices.
Contributions from D.M. Consunji Inc. rose 467 percent from P91 million to P516 million due to the completion of some projects and conservative revenue take-up the previous year.
DMCI Mining accounted for P510 million, 27 percent better year-on-year from P403 million primarily due to higher average selling prices for nickel ore.
Associate Maynilad saw a 9-percent drop in contributions from P431 million to P393 million owing to flat billed volume and higher costs.
Contributions from DMCI Power jumped by 35 percent from P152 million to P205 million because of higher electricity sales volume and prices.
DMCI Holdings grew its aggregate assets by 12 percent year-on-year owing to higher cash and working capital. Net debt-to-equity ratio ended at 13 percent, a marked improvement from 32 percent at the end of 2021. Return on equity likewise improved to 31 percent over the last 12 months when compared to the previous year’s return of 16 percent.
