DMCI Holdings books 30% less profit on Maynilad charges

DMCI Holdings Inc., the investment vehicle of the Consunji family, reported a 30 percent drop in net profit for the nine months ending September this year as it booked extraordinary and non-operating charges from its water business.

In a financial report to the Philippine Stock Exchange, DMCI said its net earnings reached P1.21 billion, lower than the P1.73-billion level a year earlier although revenues amounted to P14.15 billion, up 52.3 percent from the previous year.

DMCI’s investment in the water sector, operated under Maynilad Water Services Inc. and co-owned via consortium with Metro Pacific Investments Corp., reported an impressive growth in operating level income from P1.1 billion to P2 billion on the back of higher billed volume.

DMCI said the adoption of a new concession accounting principle for 2008 accounted for a net charge of P787 million (the company’s share is P331 million). This net charge is mainly the result of the forex losses from the recognition of dollar denominated future concession fee payables, the recognition of which is a feature of the new accounting standard.

Its real estate business, DMCI Project Developers Inc., reported a 28 percent rise in net income to P748 million on the back of a 71 percent jump in revenues to P3.5 billion. Better sales volume from new projects and the higher selling price boosted the company’s financial performance.

Sales came from existing projects: Manors at Celebrity Place, Raya Gardens Condominiums, Mahogany Place Subdivision and Rosewood Pointe Homes which accounted for 40 percent of all real estate revenues. 

On the other hand, completion of units in the new projects: Alta Vista Boracay, Dansalan Gardens Condominiums, Riverfront Residences and Cypress Towers, contributed a total of P950 million or 26 percent of real estate sales booked for the period.

Meanwhile, earnings of its construction business under wholly-owned unit D.M. Consunji Inc. fell five percent as higher costs offset the 37 percent increase in its revenues. This was caused mainly by change orders (costs already booked but revenues pending approval), increased works from outside contracts and construction from the water business.

The company’s coal mining business, operated by 56 percent-owned Semirara Mining Corp., reported a slight increase in net profit to P570.84 million despite a 40 percent hike in revenues. 

At an average price of P2,342 per metric ton, coal revenues amounted to P6.414 billion at the end of September this year.   — Zinnia B. Dela Peña