Coal windfall boosts DMCI earnings to record high
DMCI chief Isidro Consunji—CONTRIBUTED PHOTO
Consunji-led DMCI Holdings Inc. saw profits soar to a record high in 2022 after a commodities rally fueled a 69-percent surge in net income to over P31 billion.
The family conglomerate, which attributed most of the gains to coal and power producer Semirara Mining and Power Corp., said most units posted higher contributions for the year, pushing up revenues by 32 percent to P142.6 billion.
“Twenty twenty-two was a very good year for us. Bullish commodity and electricity markets brought a significant boost to our businesses,” DMCI Holdings chair and president Isidro Consunji said in a statement on Tuesday.
He said conditions for 2023 would be different as they expect commodity prices to correct lower this year.
“We expect these markets to soften this year, so our strategy is centered around increasing volumes and optimizing cost management to maintain healthy margins,” Consunji said.
DMCI said contributions from Semirara last year expanded by 145 percent to P22.7 billion as prices rallied in the wake of the Russian invasion of Ukraine and strong demand amid the postpandemic economic resurgence.
The company also benefited from high domestic coal shipments and higher spot electricity sales.
DMCI Homes contributed P4.5 billion, up 2 percent, due to “better selling prices and higher other income from forfeitures.”
Maynilad Water Services Inc., a venture with Metro Pacific Investments Corp. and Japan’s Marubeni, saw net income contribution down by 6 percent to P1.4 billion as a result of higher costs for light and power, repairs and maintenance, and chemicals.
DMCI Mining contributions also grew 7 percent to P1.3 billion on higher selling prices while DMCI Power added 28 percent to P742 million.
Construction arm D.M. Consunji Inc. contributed P587 million, a 55-percent jump following the completion of building and infrastructure projects.
DMCI Holding said profits in the fourth quarter alone fell 30 percent to P3.5 billion on higher costs. Core earnings also shed 30 percent to P3.6 billion
“The declines were due to the combined effect of higher stripping costs and fuel expenses, as well as income tax expense coupled with fewer real estate accounts that qualified for revenue recognition and appreciation of the peso against the dollar late last year,” the company explained. INQ
