DMCI earnings slide by 9% in Q2

MANILA, Philippines — DMCI Holdings, the listed holding company of the Consunji Group, recorded a net income of P8.2 billion in the second quarter, down by nine percent, dragged by lower contributions from its coal, nickel, real estate and construction businesses.

This brought first half net income to P15.9 billion, down 22 percent from a year ago due to lower contributions from its coal, nickel, real estate and construction businesses.

“Although coal and nickel prices dropped double digits and construction volumes are on a downtrend, we were able to deliver our second highest second quarter ever,” said DMCI Holdings chairman and president Isidro Consunji.

Excluding a non-recurring gain of P37 million in 2022 attributable to DMCI gain on sale of land and a non-recurring loss of P12 million this year due to Maynilad donations and net foreign exchange losses, DMCI’s consolidated core net income declined by eight percent to P8.3 billion in the second quarter of the year from P9 billion.

In terms of net income contribution, DMCI subsidiary Semirara Mining and Power Corp. contributed P5.8 billion in the second quarter, down five percent amid  weaker coal selling prices during the period.

DMCI Homes, meanwhile, contributed P1.4 billion, up by eight percent from P1.3 billion on the back of higher finance and other income.

Affiliate water distributor Maynilad delivered a 21 percent improvement in contribution to P474 million in the second quarter due to the combined effect of improved billed volume, customer mix and average effective tariff.

Contribution from DMCI Mining, meanwhile, fell by 51 percent to P250 million mainly due to lower selling prices and foreign exchange gain, coupled with higher costs.

The power business contributed P231 million, up  13 percent from P205 million because of higher electricity sales and lower fuel costs.

Slower construction accomplishments, fewer projects and delays in major projects, meanwhile, plunged infrastructure arm D.M. Consunji Inc.’s second quarter net income contribution to P139 million from P516 million a year ago.