The weaker performance of its energy and real estate businesses, along with losses from the mining subsidiary, pulled down the first-semester profit of Consunji-led DMCI Holdings Inc. by 29 percent to P11.1 billion.
This was partially offset by improvements in its water and off-grid power segments, DMCI said in a stock exchange filing on Tuesday.
“Market prices and global supply chains have normalized, so our challenge is to strategically manage costs, optimize operational efficiency and capitalize on synergies across our business units,” DMCI chair and president Isidro Consunji said.
READ: Weak energy, real estate, mining pull down DMCI profit
In the second quarter alone, the engineering and construction conglomerate’s net income fell by 32 percent to P5.5 billion.
Net income contribution from Semirara Mining and Power Corp. was slashed by 41 percent to P3.4 billion due to softer selling prices. However, this was cushioned by higher coal and electricity sales volumes.
Meanwhile, property arm DMCI Homes contributed P737 million, a 43-percent drop on lower real estate revenues and higher operating expenses.
These were tempered by higher gains from joint-venture construction revenues, rentals and forfeitures, DMCI said.
Earlier, Consunji said they expected the property segment’s performance to return to prepandemic levels by next year, banking on returns from new projects.
Weak market prices, reduced shipments and costs incurred at its Palawan mine caused DMCI Mining to swing to a P43-million net loss from a P250-million income last year.
On the upside, the earnings contribution of Maynilad Water Services Inc., in which DMCI has a 27.19-percent shareholding, surged by 54 percent to P732 million as billed volume and average effective tariff rose.
Contributions from DMCI Power, the holding firm’s off-grid power subsidiary, ballooned by 54 percent to P355 million on the back of “double-digit increases in power dispatch and lower direct cost from more affordable fuel use.”
READ: DMCI, Cemex union produces 44-MW power deal
DMCI Power currently operates and maintains bunker-fired power plants and diesel generating sets in the provinces of Masbate, Palawan and Oriental Mindoro. It also provides electricity to missionary areas through power supply agreements with electric cooperatives.
Engineering arm DM Consunji Inc.’s contribution soared by 73 percent to P240 million on lower cash and noncash costs, reduced tax provisions and higher finance income.
Last month, DMCI began slowly integrating its business into cement manufacturer Cemex Holdings Philippines Inc. via Semirara.
Cemex subsidiary APO Cement Corp. had signed a retail supply agreement with SEM Calaca RES Corp., the retail electricity supply arm of Semirara, involving 44 megawatts of supply.
DMCI is set to take over Cemex in a $305.6-million deal forged with the majority shareholder of the country’s fourth-largest cement manufacturer. INQ