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DMCI Holdings Nets PhP2.9 B

Diversified engineering conglomerate DMCI Holdings, Inc. (PSE: DMCIHI) recorded a 26-percent drop in first-quarter earnings from PhP3.9 billion to PhP2.9 billion due to weak income contributions from its coal and on-grid energy businesses.

Excluding non-recurring losses of PhP91 million during the reporting period and one-time losses of PhP239 million during the same quarter last year, core net income fell 28 percent year-on-year from PhP4.1 billion to PhP3 billion.

The PhP91 million non-recurring item is mainly the company’s share in the accelerated depreciation of Calaca Units 1 and 2 while the one-time losses in the first quarter of 2018 include the company’s share in the accelerated depreciation of Calaca Units 1 and 2 (PhP167 million) and one-time refinancing costs of Maynilad (PhP72 million)

Consolidated revenues from January to March dropped 3 percent to PhP19.7 billion primarily due to lower coal prices and reduced power generation.

“All our other businesses did well in the first quarter but their combined results were not enough to mitigate the earnings slowdown of Semirara Mining and Power Corporation (SMPC),” said DMCI Holdings Chairman and President Isidro A. Consunji.

Net income contributions from SMPC plunged 49 percent from PhP2.8 billion to PhP1.4 billion owing to an 18-percent decline in the average selling price of coal and 21-percent drop in total power generation.

Income share from D.M. Consunji, Inc. rose 7 percent from PhP336 million to PhP359 million due to higher accomplishment of its ongoing infrastructure projects.

DMCI Homes contributed PhP481 million, a 5 percent improvement from restated first-quarter earnings of PhP460 million last year. The growth was attributable to lower cost of real estate development during the period while the restatement was due to the adoption of PFRS 15 which became effective in 2018.

Earnings share from DMCI Power jumped 32 percent from PhP76 million to PhP100 million on the back of higher energy sales in Masbate, Palawan and Oriental Mindoro.

DMCI Mining posted a 129-percent increase in net income contribution from PhP45 million to PhP103 million as nickel ore shipments surged 118 percent from 156 thousand wet metric tons (WMT) to 338 thousand WMT.

Meanwhile, net income contribution from Maynilad jumped 13 percent from PhP387 million to PhP436 million due to the combined effect of higher billed volume, a more favorable customer mix, inflationary adjustment on the basic charge beginning January 1, 2019 and tariff adjustment of 2.7 percent starting October 1, 2018.

Contributions from the Parent Company and other investments increased 86 percent from PhP37 million to PhP69 million because of higher interest income.

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