DMCI Holdings income drops 20% to P24.9 billion

DMCI Holdings, Inc. announced on Wednesday a 20% decrease in its 2023 consolidated net income to P24.9 billion, mainly due to the normalizing prices of utilities.

Consolidated revenues dropped by 14% to P122.8 billion in 2023 from P142.6 billion the previous year, led by stabilizing coal, nickel, and electricity prices, a slowdown in construction and real estate activities, and a surge in revenue reversals stemming from the cancellation of real estate sales, DMCI Holdings said in a stock exchange disclosure on Wednesday.

Meanwhile, consolidated revenues dropped by 14% to P122.8 billion in 2023 from P142.6 billion the previous year, led by stabilizing coal, nickel, and electricity prices, a slowdown in construction and real estate activities, and a surge in revenue reversals stemming from the cancellation of real estate sales, as stated by DMCI Holdings in a stock exchange disclosure on Wednesday.

In the fourth quarter, DMCI Holdings saw a 36% increase in its consolidated net income to P4.7 billion from P3.5 billion. The conglomerate’s revenues rose by 8% to P30.4 billion on higher coal exports.

“We saw sharp corrections in commodity and energy prices in 2023 but because our businesses did very well in terms of production and sales volume, we managed to prevent a severe decline in our profitability,” DMCI Holdings Chairman and President Isidro A. Consunji said.

According to the company, the Average Newcastle and Indonesian Coal Index 4 prices dropped by 64% and 26%, respectively, while Philippine Freight on Board nickel price (for 1.3% Ni) fell by 30%.

It said that the average effective spot settlement price for all grids across the Philippines declined by 18%.

For full-year 2023 results, DMCI Holdings said it observed higher net income contributions from its real estate, off-grid energy, and water utility businesses, while lower contributions were observed from integrated energy, nickel, and construction subsidiaries.

Semirara Mining and Power Corp. saw a 30% drop in its contribution to P15.8 billion due to the combined effect of all-time high coal shipments and electricity sales amid stabilizing prices.

DMCI Homes contributed 2% higher core earnings to P4.6 billion led by better selling prices and higher income from rental and forfeiture fees.

 DMCI Power’s contribution rose by 29% to P959 million from P742 million on higher gross generation and electricity dispatch.

D.M. Consunji, Inc. had a 2% drop in net income to P573 million due to lower project accomplishments on fewer ongoing projects.

Contribution of DMCI Mining fell by 49% to P655 million on the back of lower nickel prices and higher shipping costs.

Meanwhile, DMCI Holdings’ affiliate Maynilad Water Services, Inc. contributed P2.1 in earnings, a 42% jump from P1.5 billion on higher water production, billed volume, and adjusted tariff. The conglomerate has a 25% stake in Maynilad.

DMCI Holdings shares fell by 2.94% or 34 centavos to P11.22 apiece on Wednesday. — Revin Mikhael D. Ochave