DMCI Holdings’ profit up 73% on energy, real estate growth
DMCI Holdings, Inc. reported on Tuesday that its second-quarter consolidated net income went up by 73% to P9.03 billion from P5.23 billion, driven by growth in its energy and real estate businesses.
Without one-off items, core net income rose by 113% to P8.99 billion from P4.23 billion, it said in a disclosure to the stock exchange.
“We had a very strong first half because of elevated market prices. If the current trend holds till October, we hope to declare another round of special dividends for our shareholders before yearend,” DMCI Holdings Chairman and President Isidro A. Consunji said.
Among its businesses, Semirara Mining and Power Corp. (SMPC) accounted for the biggest contribution, which more than doubled to P6.11 billion from P2.34 billion, driven by higher coal selling prices and higher spot sales volume amid elevated market prices.
DMCI Project Developers, Inc. (DMCI Homes), the firm’s real estate arm, contributed P1.31 billion, which was 63% higher than the P804 million recorded a year earlier.
The firm said the growth was due to “higher revenue recognition from ongoing projects and upward adjustment in selling prices.”
Meanwhile, contributions from D.M. Consunji, Inc. more than quintupled to P516 million from P91 million due to the completion of select projects and conservative revenue take-up the previous year.
DMCI Mining Corp.’s contributions climbed by 27% to P510 million from P403 million primarily due to higher average selling prices for nickel ore.
On the other hand, associate Maynilad Holdings Corp., which owns 93% of Maynilad Water Services, Inc., dropped by 9% to P393 million from P431 million amid flattish billed volume and higher costs.
Contributions from DMCI Power Corp. jumped by 35% to P205 million from P152 million due to higher electricity sales volume and prices.
“While consolidated full-year results is on track to be significantly higher versus last year, the group maintains its prudent second-semester outlook on persisting market volatility because of the Russia-Ukraine war, poor weather conditions and unpredictable policy shifts in the commodity markets,” DMCI Holdings said.
“Pronounced demand weakness for real estate and private construction is also likely to continue into 2023 owing to inflationary pressures, higher interest rates, tightening credit standards and weak consumption,” it added.
DMCI Holdings added that accelerated public infrastructure spending and an influx of foreign investors for public-private partnership projects could provide some relief, which the group will remain cautiously optimistic about.
The firm is primarily engaged in general construction, coal, and power generation, real estate development, water concession, nickel mining and manufacturing.
On Tuesday, DMCI shares rose by 1.62% or 15 centavos to finish at P9.40 on the stock market. — Luisa Maria Jacinta C. Jocson
