Makati—(PHStocks)—Diversified engineering conglomerate DMCI Holdings Inc. (PSE: DMC) is earmarking over PhP40 billion for its capital spending this year, more than doubling its capital commitment of PhP19.3 billion in 2015. The upsurge is largely to support the growth in its real estate and power generation businesses.
“This is our biggest annual capex program to date. There is still considerable room for growth in the property market and power industry so we are focusing our resources on these areas,” said DMCI Holdings Chairman and President Isidro A. Consunji.
Real estate subsidiary DMCI Homes will account for the biggest chunk of the capital commitment at PhP32.5 billion. Of this amount, PhP27.5 billion pertains to total development cost of new projects to be launched in 2016 while the remaining PhP5 billion will fund land acquisitions.
Among the big projects of DMCI Homes for this year is a high end condominium located in Asia World, Paranaque, which will be the company’s first luxury residential development. It will also begin developing its first mixed-use building in Makati.
Plans are also underway for the mid-segment developer to expand outside Metro Manila and enter the low-cost housing market.
Betting on Power
The DMCI group is also spending around PhP7.2 billion for its energy projects under Semirara Mining and Power Corp. (SMPC, PSE: SCC) and DMCI Power Corp. (DPC).
Integrated energy company SMPC is setting aside PhP5 billion for equipment acquisition and facilities improvement.
Off-grid power supplier DPC plans to spend over PhP2.2 billion for power plant construction and equipment acquisition.
D.M. Consunji Inc. (DMCI) and DMCI Mining Corp. are setting aside around PhP700 million for the acquisition of additional equipment and machineries to support their operations.
DMCI is participating in a number of infrastructure projects this year, either as a bidder or contractor. Meanwhile, DMCI Mining plans to increase its nickel output to help weather the slump in commodity prices.