CONSUNJI-LED engineering conglomerate DMCI Holdings, Inc. reported a 9% decline in its first-quarter (Q1) net income to P5.1 billion from P5.6 billion a year earlier, weighed down by lower coal prices and the ongoing integration of its recently acquired cement business.
In a regulatory filing on Wednesday, the company said total revenues rose by 16% to P31.86 billion, driven by the addition of the cement business, higher construction and real estate revenue recognition, increased on- and off-grid power dispatch, and stronger nickel sales and prices.
“Market conditions today are very different from five years ago, but our businesses have adapted well. We continue to pursue organic growth across the portfolio,” DMCI Holdings Chairman and Chief Executive Officer Isidro A. Consunji said in a separate statement.
Coal producer Semirara Mining and Power Corp. contributed P2.5 billion, down 31% from a year ago, due to lower coal prices and a higher share of lower-grade coal shipments. The decline was partially offset by stronger on-grid power operations.
Real estate unit DMCI Homes, Inc. posted a 56% increase in contribution to P1.4 billion, supported by newly recognized accounts, higher income from forfeitures and rentals, and stronger finance income.
Water concessionaire Maynilad Water Services, Inc. grew its contribution by 39% to P926 million, backed by a higher average effective tariff and lower cash costs.
DMCI Holdings holds a 25% stake in Maynilad.
The off-grid power business, led by DMCI Power Corp., increased its contribution by 2% to P270 million, driven by higher energy sales and the expansion of bunker-fired capacity in Palawan.
DMCI Mining Corp. delivered a P409-million net income, reversing the P22-million net loss a year earlier, due to strong operations and improved selling prices.
Construction arm D.M. Consunji, Inc. posted a lower contribution of P50 million, down from P98 million, amid higher cash costs, project delays, and conservative revenue recognition practices.
Cement producer Concreat Holdings Philippines, Inc., formerly known as Cemex Holdings Philippines, Inc., incurred a P564-million net loss due to reduced volumes and higher interest expense. DMCI Holdings completed its acquisition of Concreat in December last year and has commenced integration efforts to support future improvements.
On Wednesday, DMCI Holdings shares declined by 1.32% or 14 centavos to close at P10.50 apiece. — Revin Mikhael D. Ochave
