DMCI triples 9-month profit to P2.57B

DMCI Holdings Inc., the investment holding company of the Consunji family, reported a 79.8-percent drop in its third quarter profit as a result of reduced coal operations.

On a year-to-date basis, however, net profits of DMCI surged 220 percent to P2.57 billion from only P801.95 million in the same period a year ago. This was boosted by the P2-billion proceeds from the sale of its shares in coal mining unit Semirara Mining Corp.

DMCI’s earnings amounted to P132.03 million for the period July to September this year compared with P691.43 million the previous year. From 95 percent, DMCI’s stake in Semirara is now down to just 60 percent.

However, DMCI’s sales and services for the third quarter reached P2.51 billion, up 11.5 percent, boosting year to date sales to P8.57 billion from P5.7 billion.

Semirara reported a net income of P116 million, 83 percent lower than the P654 million posted a year earlier, mainly due to reduced coal deliveries to customers and the slowdown in the coal take-up of the cement industry.

With the current weakening of Semirara’s coal market, the company is continuously exploring other opportunities that will ensure the sustained growth and improvement of its coal business. Among these plans include putting up coal-fired power plants in Semirara Island.

DMCI said its real estate unit DMCI Project Developers Inc. contributed P992.08 million in total revenues. East Ortigas Mansions located in Pasig continued to provide much-needed revenues as it pumped in P241 million in sales.

The Japanese-themed Mayfield Park Residences project in Cainta, Rizal also pitched in significant numbers with sales of P104 million.

The overseas Filipino market remains a source of opportunity for DMCI’s growing real estate business with the international housing division posting exceptional sales for the period.

As for its flagship construction company, D.M. Consunji Inc. reported a 100-percent growth with sustained contributions from old and existing major ticket projects like Shang Grand Tower, SM Sucat, Shopwise Antipolo and Single Power Plant.

In view of the stiff competition in the industry, D.M. Consunji is exploring other opportunities that will provide recurring construction income for DMCI.