DMCI profit shrinks 25% to P5.6 billion in Q1

MANILA, Philippines — Earnings of diversified engineering conglomerate DMCI Holdings Inc. fell by a quarter in the first three months   as a result of lower contributions from most of its businesses.

DMCI Holdings posted a 25-percent drop in net income to P5.6 billion in the first quarter from P7.5 billion in the same period last year.

Revenue generated for the three-month period declined by 17 percent to P27.4 billion from last year’s P33 billion.

The reduction in revenues was attributed by the company to stabilizing coal, nickel and electricity prices, along with lower construction accomplishments, fewer real estate accounts that qualified for revenue recognition and higher real estate sales cancellations.

Semirara Mining and Power Corp.’s net income contribution dropped by 27 percent to P3.7 billion as weaker market prices muted the impact of higher coal shipments and electricity dispatch.

Revenue recognition slowdown from ongoing and new accounts resulted in a 12-percent decline in DMCI Homes’ contribution at P879 million.

D.M. Consunji Inc. contributed P98 million, a 64-percent plunge from P273 million due to project delays and fewer ongoing projects.

DMCI Mining incurred a net loss of P22 million during the quarter, a reversal of  a P473 million net income last year due to decreased shipments, lower nickel grades and weaker selling prices.

Meanwhile, contribution from affiliate Maynilad grew by 28 percent year-on-year to P664 million on the back of higher billed volume, better customer mix and improved average effective tariff.

DMCI Power, for its part, nearly doubled its contribution from P134 million to P264 million, fueled by increased generation capacity and electricity demand, coupled with lower fuel expenses.

DMCI Holdings chairman and president Isidro Consunji said market prices pose a significant challenge for the group this year.

“We do not expect coal, nickel and electricity prices to recover to the highs of the past two years due to shifts in demand-supply dynamics,” he said.

Consunji said DMCI would focus on improving operational efficiency and refining its marketing strategies to enhance the value of our products and services to mitigate external challenges.