DMCI Holdings net income down 26% in Q1

Consunji-led engineering conglomerate DMCI Holdings Inc. saw a 26-percent year-on-year drop in first-quarter net profit to P2.9 billion as the slump in coal prices and reduced power generation adversely affected the earnings contribution of Semirara Mining and Power Corp.

Excluding nonrecurring items, DMCI’s core net income fell by 28 percent year-on-year to P3 billion, the company disclosed to the Philippine Stock Exchange.

DMCI’s consolidated revenues from January to March fell by 3 percent year-on-year to P19.7 billion. The drop in global coal prices translated to an 18-percent year-on-year decrease in coal average selling price to P2,272 per ton this year.

Softer global coal prices also dragged down Semirara’s average selling price for power by 19 percent to P4.32 per kilowatt hour. Total power generation fell to 508 GWh from 642 GWh year-on-year as two of its four plants were affected by outages due to boiler tube leaks and repair of condenser while one was placed on advanced maintenance shutdown after experiencing tube leaks in mid-January.

“All our other businesses did well in the first quarter but their combined results were not enough to mitigate the earnings slowdown of Semirara,” said DMCI chair and president Isidro Consunji.

Net income contribution from Semirara plunged by 49 percent to P1.4 billion due to an 18-percent decline in the average selling price of coal and 21-percent drop in total power generation.

On the other hand, income share from construction arm D.M. Consunji Inc. rose by 7 percent to P359 million due to higher accomplishment of its ongoing infrastructure projects.

DMCI Homes contributed P481 million, up 5 percent from restated first-quarter earnings of P460 million last year. The growth was attributable to lower cost of real estate development while the restatement was due to the adoption of new accounting rules. —DORIS DUMLAO-ABADILLA