The profit of the Consuji-led DMCI Holdings Inc. during the first nine months of the year surged on the back of a one-time gain from the partial sale of its water business.
In its financial report posted at the Philippine Stock Exchange website, DMCI reported a consolidated net profit attributable to parent shareholders of P16.4 billion for the first nine months of
2013, which is a 107-percent increase from the P7.9 billion recorded in the same period of 2012.
The significant rise in its profit, according to the listed conglomerate, was primarily from the recognition of a one-time gain from the partial sale of its water business.
The company’s domestic-oriented businesses also remain robust and continue their strong growth. In particular, the power segment of the company posted a 181-percent increase in net contributions, which was backed by the strong performance of the newly rehabilitated Calaca power units.
Construction and residential real estate segments, on the other hand, reported double-digit improvements in their net income.
As expected, the company is reporting a lower net earnings share from the water business, as a result of a reduced effective interest in Maynilad Water Services Inc., from 41 percent last year to 25 percent early this year.
The strong financial results of DMCI’s domestic-oriented businesses were also partially offset by the weak performance of the mining businesses, which continues to be adversely affected by the current state of the global commodity prices.
Overall, consolidated core income of the group modestly rose by 2 percent compared to the same period last year.
The company’s investment in the water sector is recognized mainly through its equity investment in the partnership with Metro Pacific Investments Corp. with actual operations under Maynilad.
Maynilad’s reported net income was marginally lower by 1 percent at P5.04 billion compared to P5.09 billion of last year, due to one-time front-end fees and taxes brought about by the pre-termination of approximately P21 billion in long-term loans. The purpose is to avail of lower interest rates and improve the company’s collateral position.
The company’s construction business, reported under D.M. Consunji Inc., on the other hand, posted better operations as first nine months net contributions reached P1.15 billion this year compared to P962 million last year. This was due mainly to billable works done for building projects.
The property segment of the group, meanwhile, posted an 11-percent growth in net income during the period, reaching P2.04 billion compared to P1.83 billion recorded in the same period last year. Revenues also posted a robust 37-percent growth in the first nine months of 2013 compared to last year.
For the company’s coal mining business, which owns the power generating asset, Calaca, are both lodged under the 56-percent owned and publicly listed Semirara Mining Corp. Consolidated revenues for Semirara slightly increased by 2 percent year-on-year to P17.42 billion in the current period.