BusinessHolding Firms

DMCI Holdings 1H Profit Up Nearly Fivefold to PhP9.5B

Diversified engineering conglomerate DMCI Holdings (PSE: DMC) recorded PhP9.5 billion in first-half consolidated net income, nearly five times the PhP2 billion it reported last year.

The sharp uptrend was due to the exceptional rebound of its subsidiaries, Semirara Mining and Power Corporation (SMPC), DMCI Homes, and DMCI Mining.

Excluding a nonrecurring gain of PhP1.2 billion this year relative to the remeasurement of deferred tax liabilities as a result of the CREATE law and PhP586 million net loss mainly from sales cancellations for a real estate project last year, consolidated core net income surged 217 percent from PhP2.6 billion to PhP8.3 billion.

“Coal and nickel prices were rallying while our production was ramping up so our Q2 was even better than our Q1. Revenue recognition in our real estate business also improved on higher productivity,” said DMCI Holdings chairman and president Isidro A. Consunji.

For the second quarter alone, DMCI Holdings recognized consolidated net earnings of PhP5.2 billion, up by 269-percent year-on-year from PhP1.4 billion. Excluding nonrecurring items, core net income grew by 166% from PhP1.6 billion to PhP4.2 billion.

“We are within striking distance of returning to our pre-pandemic annual net income of PhP10.5 billion. Barring any major unforeseen events and if commodity prices hold up, we may be able to finish the year even stronger,” added Consunji.

Contribution Breakdown

SMPC contributed PhP3.7 billion, a near threefold increase from PhP1.3 billion owing to its all-time high coal production in the first quarter, all-time high shipments in the second quarter, and a strong rebound in coal and electricity spot prices.

Contributions from DMCI Homes soared 6,018 percent from PhP38 million to PhP2.3 billion on higher construction accomplishments and recognition of down payment from new accounts.

DMCI Mining accounted for PhP818 million, a 345-percent improvement from PhP184 million on the back of higher production, average grade and shipment amid a booming nickel market.

Affiliate Maynilad posted a 15-percent decline in contributions from PhP847 million to PhP718 million as quarantine measures led to a 3-percent drop in billed volume.

D.M. Consunji, Inc. contributed PhP484 million, 426 percent higher compared to PhP92 million last year owing to higher construction accomplishments and minimal coronavirus-related expenses.

Contributions from DMCI Power grew 5 percent from PhP256 million to PhP270million because of higher electricity sales to Masbate and Palawan.

Income from parent and others recovered by 132 percent from a net loss of PhP57 million to a net income of PhP18 million in the absence of expenses related to the COVID-19 pandemic.

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