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DMCI posts record profit in Q1

Diversified engineering conglomerate DMCI Holdings, Inc. reported a 165 percent surge in first quarter earnings from P4.3 billion in 2021 to this year’s P11.3 billion, its highest ever for any given quarter.

In a disclosure to the Philippine Stock Exchange, the firm said its record-setting performance was mainly driven by the robust operating results of its coal, nickel and power businesses amid rallying commodities and electricity spot prices.

Excluding a non-recurring gain of P179 million last year mainly from the deferred tax remeasurement impact of CREATE Act on Maynilad’s service concession asset and a P12-million gain on sale of land of DMCI Homes, consolidated core net income jumped by a higher 177 percent from P4.1 billion to P11.3 billion.

“Semirara exceeded our expectations while DMCI Mining and DMCI Power both grew double-digits,” said DMCI Holdings Chairman and President Isidro A. Consunji.

He added though that, “But our construction and real estate businesses are showing signs of slowdown because of knock-on effects of the pandemic and Russia-Ukraine war.”

Net income contribution from Semirara Mining and Power Corporation (SMPC) skyrocketed by 544 percent from P1.3 billion to P8 billion on the back of record-high coal production, shipment and average selling prices, and further boosted by higher spot electricity sales at elevated prices.

DMCI Homes contributed P1.4 billion, a 7 percent decline from P1.5 billion owing to lower construction accomplishments, fewer new accounts that qualified for revenue recognition and higher sales cancellations.

Net income contribution from DMCI Mining grew 20 percent from P415 million to P499 million on higher nickel ore shipment and forex rates.

D.M. Consunji, Inc. recorded a 7 percent drop in net income contribution from P393 million to P367 million mainly due to the absence of a one-time related party transaction for a joint venture infrastructure project.

Maynilad’s contribution rose by 11 percent from P287 million to P319 million on lower personnel, utilities and interest expenses.

DMCI Power contributed P132 million, a 12 percent upturn from P118 million because of higher generation and sales across all its service areas.

Income from parent and others retraced by 38 percent from P13 million to P8 million on lower interest income.

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The article was originally published in Manila Bulletin and written by James A. Loyola.