DMCI profit dives to P5.9B in 2020

Listed DMCI Holdings Inc. saw its net income fall to P5.9 billion last year as the coronavirus pandemic and the restrictions it prompted affected its business.

In a disclosure, the Consunji-led holding company said the amount was a 44-percent drop from P10.5 billion in 2019.

DMCI Holdings Chairman and President Isidro Consunji blamed the state-imposed community quarantine for hampering the firm’s construction projects and weak market conditions for the sluggish sales of most of its businesses.

For the fourth quarter, consolidated earnings surged by 59 percent from P1.2 billion to P1.9 billion, which the company attributed to “the absence of a one-time goodwill impairment loss.”

Mining subsidiary Semirara Mining and Power Corp.’s core income contribution declined by 65 percent year-on-year to P2 billion from P5.7 billion on the back of double-digit losses in coal sales and average selling prices for coal and electricity.

DMCI Homes’ profit contribution fell by 36 percent to P1.9 billion from P3 billion as quarantine rules slowed construction activities, which lowered revenues and unit turnovers. Higher construction costs also contributed to the decline.

The earnings of another unit, DMCI Power, slipped by 12 percent to P537 million from P611 million because of the absence of a one-time retroactive adjustment in Palawan’s nonfuel tariff worth P113 million in 2019. Without the adjustment, its income climbed by 8 percent.

DMCI affiliate Maynilad Water Services Inc. contributed P1.5 billion, 13 percent lower than P1.8 billion the year before after recording weaker commercial and industrial sales and higher depreciation and amortization for its water source and wastewater capital investments.

DM Consunji Inc.’s contribution plunged to P109 million from P906 million on lower construction productivity and accomplishments amid the pandemic.

Lower interest income and pandemic-related expenses prompted DMCI Holdings and other investments to incur a P51-million net loss last year.

DMCI Holdings shares lost 6 centavos or 1.1 percent to close at P5.39 each on Friday.

Article and Photo originally posted by Manila Times last March 6, 2021 and written by Faye Almazan.