DMCI Holdings’ earnings dip 28%

Consunji-owned DMCI Holdings reported a 28 percent drop in net income to P20 billion for the first nine months of 2023 from P27.6 billion in the same period last year due to normalizing coal and nickel prices. 

In a disclosure to the Philippine Stock Exchange (PSE), the firm’s revenues also declined by 19 percent to P92 billion from P114 billion because of the combined effects of “normalizing prices (commodities and electricity), reduced coal shipments, lower construction accomplishments, higher revenue reversals from real estate sales cancellations and fewer new real estate accounts that qualified for revenue recognition.”

DMCI Holdings Chairman and President Isidro A. Consunji explained that the company saw double-digit contractions in coal and nickel index prices because of the China economic slowdown and global oversupply. However, our power businesses acted as significant buffers.”

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“Contributions from SEM-Calaca [Power Corporation], Southwest Luzon [Power Generation Corporation] and DMCI Power Corporation (DMCI Power) all grew double digits because of improved generation, sales volume and margins,” he added.

Consolidated core net income from January to September was similar to its reported net income “due to a non-recurring gain of P2 million last year for the sale of a DMCI lot and a non-recurring loss this year of P27 million because of Maynilad forex losses and donations,” said the firm.

The drop in net income also reflected a decrease in its earnings per share to P1.51 from P2.08, resulting in 18.4 percent Return on Equity.

Among its subsidiaries and associates, Semirara Mining and Power Corporation (SMPC), DMCI Project Developers, Inc. (DMCI Homes), and Maynilad Holdings Corporation contributed 92 percent to the core net income.

SMPC contributed P12.8 billion, 37 percent lower from its P20.4 billion contribution last year due  to lower shipments and average selling prices, but offset by higher power generation, sales, and average selling price.

DMCI Homes contributed P3.8 billion similar from last year as it recorded better selling prices and higher income from sales and cancellations despite lower percentage of project completion.

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Maynilad’s contributions increased by 51 percent to P1.7 billion from P1.1 billion caused by higher billed volume, better customer mix and improved average effective tariff.

D.M. Consunji, Inc.’s profit contribution also went down 32 percent from P676 million to P459 million due to completion of most infrastructure projects, and no pending projects. DMCI Power contributed P632 million, 15 percent higher from P549 million as electricity sales volumes rose, fuel costs reduced, and margins improved.

Lastly, lower selling prices and higher costs plummeted DMCI Mining Corporation (DMCI Mining)’s net income contribution by 48 percent to P569 million from P1.1 billion last year. 

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The article was originally published in Manila Bulletin and written by Khriscielle Yalao.

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