DMCI profit as of June pegged at P5B

DMCI HOLDINGS of the Consunji group yielded an unaudited net income of P5 billion in the first half this year, up from the P4.2 billion recorded in the same period last year, according to the company’s CEO.

DMCI president Isidro Consunji told reporters on the sidelines of The Asset forum that the company’s second quarter performance was “okay,” resulting in a bottom line as of end-June of “a little less than P5 billion.”

In the first quarter, DMCI grew its consolidated net profit by 61 percent year-on-year to P2.2 billion, on the back of robust coal mining operations of subsidiary Semirara Mining Corp. The contribution of mining to DMCI’s net income attributable to parent equity holders amounted to P936 million for the quarter, up by 194 percent from the same period last year.

DMCI owns 56 percent of Semirara, whose coal mining business benefited from higher coal prices and the improved operations in the direct shipping nickel ore business.

Consunji also said in a briefing that DMCI had second thoughts about listing its property development arm—DMCI Homes—on the Philippine Stock Exchange.

“We don’t think it’s going to add value. There will be a discount to the holding firm when you can (separately) buy everything from the market,” Consunji said.

In the first quarter, earnings from the real estate, water and power segments made up for the slack in its traditional construction business.

The company’s investment in the water sector is recognized mainly through the equity investment in the partnership with Metro Pacific Investments Corp., with the actual operations under Maynilad Water Services, Inc. (Maynilad).

DMCI was awarded significant vertical building contracts in the first quarter of 2011, with work scheduled to start within the year.

These projects include the casino-hotel project of businessman Enrique Razon, located at the Pagcor Entertainment City in Pasay City with a project cost of around P8.6 billion, a residential condominium in Makati City for San Miguel Corp. and a corporate headquarters in Fort Bonifacio, Taguig City.

In addition, DMCI expects the completion and finalization of the MRT-7 and Trans-Asia Coal Power Plant contracts to be in place within the year.

These contracts were awarded to DMCI but details have yet to be finalized.

DMCI is also interested in the infrastructure development programs of the government under the public-private partnership framework.