‘Pandemic effects will be felt until 2022’

Isidro A. Consunji, chairman and CEO of engineering conglomerate DMCI Holdings Inc., on Tuesday said the economic effects of the pandemic will persist until the end of next year.

Consunji said during the company’s stockholders’ meeting that the company still expects a partial rebound in its operations this year, partly as a result of a strong order book of its construction arm, but a return to its pre-pandemic levels may begin only in 2023.

“Considering the vaccine rollout is only starting, it will probably end by the first quarter of next year. So, the side effects of this pandemic would probably end at the end of 2022,” Consunji said.

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He said, however, that most of DMCI Holdings units will see a steady growth in its operations this year.

“DMCI Power will probably continue its steady growth. DMCI Mining will also continue because as long as the Indonesian ore ban continues, and today’s Chinese very bullish market, I hope it will stay buoyant. DMCI Homes will probably be back to its pre-pandemic level by 2023. DMCI Construction, probably next year if we win some of the big-ticket items in the ‘Build, Build, Build’ Program of the government,” he said.

Maynilad Water Services Inc., where DMCI owns a minority stake, is on track to meeting its income target by the end of this year, particularly if it secures approval for the revised concession agreement it is currently hammering out with the government.

“For Semirara (Mining and Power Corp.), we will have a bounce-back this year because coal prices have gone up, but the prices of electricity are going down. And the projection is, it will probably remain low for the next two or three years. So, it may not attain pre-pandemic profitability, probably 75 percent of what it attained before,” he said.

Consunji said the company intends to participate in “Build, Build, Build” projects, but only as a joint-venture partner or as a subcontractor, considering that these projects will not allow DMCI to participate as a single entity.

Projects funded by the Japan International Cooperation Agency require Japanese participation and the pre-qualifications requirements of Asian Development Bank-funded projects will require the involvement of a foreign partner, he said.

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The construction business of DMCI was hardest hit by the pandemic and the resulting quarantine restrictions.

Net income contribution from D.M. Consunji Inc., its construction arm, slumped by 88 percent to P109 million in the first quarter as the 76-day lockdown led to lower construction accomplishments.

In the January-to-March period, DMCI Holdings income grew almost seven times to P4.3 billion from the previous year’s P616 million due to the significant contribution of its coal mining and power and housing units.

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Article and Photo originally posted by Business Mirror last May 19, 2021 and written by VG Cabuag.

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