DMCI Holdings Inc. is maintaining a cautiously optimistic outlook for 2024 even as the previous year was fairly good for the diversified engineering conglomerate despite being beset by global market uncertainties, volatile prices, and high interest rates.
In a disclosure to the Philippine Stock Exchange, DMCI Chairman and President Isidro A. Consunji noted that, “We ended 2023 with all-time high coal shipments and off-grid energy sales. Our sole operating nickel mine also posted record sales during the year.”
From January to December, Zambales Diversified Metals Corporation shipped 1.68 million wet metric tons (WMT) of nickel ore, a 16 percent upturn from 1.45 million WMT in 2022.
For 2024, Consunji said their outlook for the DMCI group’s performance takes into consideration the combined effect of cooling inflation, stabilizing interest rates, China’s economic slowdown, and modest growth in the domestic energy market.
“Slowing sales and manufacturing in China could keep a lid on commodity prices. With less demand and activity, we expect prices to be somewhat lower than last year,” he added.
Meanwhile, interest rates in 2024 are expected to play a favorable role for the DMCI group as Consunji believes that interest rates, which seem to have reached their peak, are likely to stabilize or decrease in the latter part of the year, potentially easing borrowing costs and encouraging economic activities.
The government’s handling of infrastructure projects also appears to be a positive factor according to Consunji.
Improved scheduling and payment processes for these projects are expected to hasten construction activities, a development that could have ripple effects across various sectors of the economy.
In the real estate sector, particularly the mid-segment, he noted signs of recovery and cited “one of our projects, Solmera Coast, is doing extremely well. In less than five months, we have sold out 74 percent of our launched units.”
Located in San Juan, Batangas, Solmera Coast is the first beachfront property project of DMCI Homes. As of September 30, 2023, it yielded P6.8 billion in reservation sales for the real estate company.
Summarizing his outlook, Consunji said “Overall, we expect the DMCI group to deliver another resilient performance this year.”
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The article was originally published in Manila Bulletin and written by James A. Loyola
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