DMCI 2023 profit down 20% to P24.9B
MANILA, Philippines – DMCI Holdings reported a net income of P24.9 billion, lower by 20 percent from its record-high profit the previous year as the Consunji family conglomerate saw commodity prices plunge.
“We saw sharp corrections in commodity and energy prices in 2023 but because our businesses did very well in terms of production and sales volume, we managed to prevent a severe decline in our profitability,” DMCI Chair and President Isidro A. Consunji said in a stock exchange filing.
The biggest decline came from Semirara Mining and Power Corp., whose profit contributions fell 30 percent to P15.8 billion. This was the result of average Newcastle and Indonesian coal index 4 prices falling by 64 percent and 26 percent, respectively.
Philippine Freight on Board nickel price (for 1.30 percent Ni) fell by 30 percent. DMCI said the average effective spot settlement price for all grids across the Philippines declined by 18 percent.
READ: Semirara coal exports hit record volume in 2023
DMCI noted that the drop in earnings was blunted by improved contributions from its real estate, off-grid energy, and water utility divisions.
Total revenue during the period also declined 14 percent to P122.8 billion.
Normalizing coal, nickel, electricity prices
This was again due to “normalizing coal, nickel and electricity prices, alongside a slowdown in construction and real estate activities, and an increase in revenue reversals stemming from the cancellation of real estate sales”, the company said.
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After Semirara, the next biggest contributor was DMCI Homes, which accounted for P4.6 billion in core earnings— a 2-percent increase. DMCI Homes benefited from better selling prices and higher income from rental and forfeiture fees during the period.
Maynilad Water Services Inc. contributed P2.1 billion, a 42-percent improvement, after it recorded higher water production, billed volume and adjusted tariff.
DMCI Power contributions also climbed by 29 percent to P959 million on increased gross generation and electricity dispatch. Construction arm D.M. Consunji Inc. also showed a 2-percent drop in net income to P573 million due to the slowdown in construction activities.
DMCI Mining contribution fell 49 percent to P655 million on lower nickel prices and higher shipping costs, the filing showed.
