in Pasig City — DMCIHOMES.COM
DMCI HOLDINGS, Inc. remains cautiously optimistic about its short- and medium-term prospects, with expectations for growth in its water, power, and mining businesses despite economic headwinds.
“We are cautiously optimistic about the operating performance of the group in the short and medium term,” DMCI Holdings Chairman Isidro A. Consunji said during the company’s virtual annual stockholders’ meeting on Tuesday.
“Our priorities will remain focused on disciplined execution, cost control, and maximizing synergies within our ecosystem — especially with the recent addition of our cement business. At the same time, we are mindful of external risks, such as elevated interest rates, policy changes, and the slower-than-expected recovery in the construction and property sectors,” he added.
Mr. Consunji said the group’s operating performance in the short and medium term will be driven by better plant performance at its Calaca plants, as well as capacity expansions at DMCI Power Corp. and DMCI Mining Corp.
He added that DMCI Holdings is optimistic about the growing demand for electricity and water and expects revenue recognition from DMCI Homes’ post-pandemic sales recovery and progress in infrastructure projects, including the Metro Manila Subway and South Commuter Railway contract packages.
Among its business units, Mr. Consunji said he is most optimistic about Maynilad Water Services, Inc., DMCI Mining, and the power segment of Semirara Mining and Power Corp. (SMPC).
He said Maynilad, in which DMCI holds a 25% stake, is expected to perform well with rising water demand, tariff adjustments, and continued improvements in non-revenue water amid sustained infrastructure investments.
For DMCI Power, Mr. Consunji noted that the company is set to benefit from growing electricity demand in off-grid areas. He also mentioned that DMCI Mining is seeing potential upside from the recovery in nickel ore prices and the start of commercial operations at the Zambales Chromite Mining Co.
Regarding growth plans, Mr. Consunji said SMPC is revisiting plans for the 2×350-megawatt St. Raphael Power Generation project to help meet the country’s growing baseload energy needs in the medium term.
He added that DMCI Mining is advancing the exploration and permitting of its pipeline assets and exploring the feasibility of a value-added processing plant in partnership with Nickel Asia Corp. and potentially other nickel miners and investors.
DMCI Homes is also set to launch Moriyama Nature Park in Laguna later this year as part of expanding its leisure development portfolio. The real estate developer will also expand beyond its core Metro Manila and mid-income markets.
DMCI Power is eyeing a 26% increase in capacity this year, bringing its total installed capacity to over 200 megawatts. It is also exploring opportunities through competitive selection processes that align with government plans to broaden energy access in off-grid communities.
For 2024, DMCI Holdings recorded a 21% drop in net income to P19 billion after mixed results from its businesses.
DMCI Holdings shares dropped by 0.56%, or six centavos, to P10.64 apiece on Tuesday. — Revin Mikhael D. Ochave
