DMCI Holdings H1 earnings hit P7.6B

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CONSUNJI-LED DMCI Holdings, Inc. said Friday its first-half net income surged 21 percent on the back of improved earnings contributions from its mining, homes, and construction businesses.

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DMCI said net income rose to P7.6 billion from P6.3 billion during the same period last year, boosted by higher contributions from Semirara Mining and Power Corp. (SMPC), DMCI Homes, and DM Consunji Inc. For the second quarter alone, net income was pegged at P3.6 billion.

“We had a very good first half. Our performance in the second half will likely be more modest due to the higher strip ratio of SMPC compared [with]the first half,” DMCI Holdings Chairman and President Isidro Consunji told the stock exchange.

SMPC’s consolidated net income for the first half climbed 24 percent year-on-year from P6.4 billion to P7.9 billion.

The 4 percent dip in coal sales volume was offset by a 28 percent rise in average coal prices. Energy generation picked up by 12 percent, boosted by a 12 percent increase in electricity prices.

In effect, its first half income contribution to the parent jumped 24 percent to P4.5 billion from P3.6 billion in the previous year.

“The coal business was affected, fluctuations in the coal price, but if it remains the same, then we can still do a better one so we’re projecting still higher volumes in the second half, in volume sales of coal,” DMCI Holdings Vice President and Senior Finance Officer Brian Lim told a news conference late Thursday.

The income contribution of housing arm DMCI Homes surged 78 percent to P1.6 billion from P909 million last year on higher sales and reservations and the change in accounting policy from completed contract method to percentage of completion (POC) method.

First-half sales and reservations of DMCI Homes increased 44 percent year-on-year due to the launch of bigger projects this year, with 5,396 total residential units booked in the first six months.

Construction unit DM Consunji Inc. accounted for 25 percent of the conglomerate’s revenues, with income contribution rising to P497 million from last year’s P397 million.

“[This is] due to higher percentage of completion of ongoing projects and lower construction costs among its business units,” the parent company said.

Off-grid energy supplier DMCI Power’s earnings contribution in the first half fell 5 percent from P241 million last year to P228 million, as its income tax holiday for its Masbate operations expired.

Despite its protracted mining suspension, DMCI Mining stayed profitable due to the higher average selling price of nickel. “This allowed the nickel firm to contribute P54 million to the parent—5 percent less than the P57 million recorded during the same period last year,” DMCI Holdings said.

Income contribution from affiliate Maynilad dropped 31 percent to P759 million as delays in the implementation of the rate rebasing tariff continued to put pressure earnings.

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