DMCI Holdings trims Q1 earnings to P3 B

MANILA, Philippines – Diversified engineering conglomerate DMCI Holdings Inc. registed a slight dip in profit to P3 billion in the first quarter of the year following reduced contributions from its major businesses.

Core net income stood at P2.93 billion, four percent lower than P3.06 billion in the same period last year.

The holding company’s total earnings, including the P111-million one-time gain on the partial sale of its share in Subic Water and Sewerage Co. stood flat at P3 billion.

“We expect a weak bottom line this year because of declining commodity prices, tapering electricity rates, and the termination of Maynilad’s six-year tax exemption that will drag down net income contributions from our businesses,” DMCI Holdings chairman and president Isidro Consunji said.

Property developer DMCI Homes contributed to the flat growth due to higher costs of materials and labor, paid commissions and documentary stamps from bond issuances. Its net income contribution dropped 21 percent to P665 million from P845 million in the same period last year.

Affiliate Maynilad Water Services also posted a 24 percent profit decrease to P403 million from P527 million following the expiration of its income tax holiday in December 2015.

Income contribution of DMCI Mining Corp. plummeted further 321 percent due to lower shipment volume and nickel ore market prices. The company’s net loss totaled P100 million from the P24 million bottom line in the first quarter of 2015.

On the other hand, the holding company’s power and construction businesses performed better during the period, with Semirara Mining and Power Corp. improving 16 percent to P1.6 billion from P1.4 billion due to production increase.

Off-grid supplier DMCI Power Corp. contributed P98 million, a 32-percent surge from last year’s P74 million net income.

The increase was energized mostly by higher energy dispatch of its power plants in Palawan, Masbate and Oriental Mindoro and the commercial operations of its plant in Sultan Kudarat which started in January.

Income of construction unit D.M. Consunji Inc. also rose three percent to P197 million from P191 million on the back of lower expenses.

Construction costs for the first quarter went down 14 percent to P2.7 billion from P3.1 billion in the comparative period.