ConsuNji family-led DMCI Holdings Inc. said it is “on track” toward achieving its target of P21.3-billion in consolidated net income for 2014.
Among its businesses, real estate will be the growth driver for this year’s profits, DMCI President Isidro Consunji told reporters after the firm’s annual stockholders’ meeting.
Despite the decline in the real estate business this year, “it will still drive the company’s growth because it is a steady stream of revenues,” Consunji said.
The P21.3-billion profit target, excluding equity interest in Maynilad Water Services Inc., tops the P18.9 billion consolidated net income DMCI Holdings posted for full-year 2013.
The consolidated full-year target consists of: P10 billion in DMCI core net income; P3 billion from real estate and construction; P2.3 billion from coal mining and exploration, P3.5 billion from ore mining and exploration including nickel; and P2.5 billion from power generation.
“We are focusing on the 350-megawatt (Calaca) plant and the Palawan plant because all the segments — real estate, coal mining, Maynilad, and nickel mining — are good. But power is not so good,” the DMCI president said.
DMCI Chief Finance Officer and Chief Operating Officer Herbert Consunji also said the company is ramping up its power business as it would “want something that can feed the declining construction business.”
“The power segment will get a boost next year, as well as the construction business, if the [North Luzon Expressway to South Luzon Expressway] connector road big ticket project will be awarded this year,” the DMCI president said.
“This year, our Maynilad equity share was reduced, and power was also lower as we revamped it for the first half. Mining will also be better [this year]than last year,” he added.
As for capital expenditure, the company has not disclosed its overall capex number but said DMCI has alloted P20 billion this year for the completion of the 350-MW Calaca plant.
For Maynilad, the DMCI officials noted that the local government of Olongapo City is interested in buying 10 percent of DMCI’s 40-percent holdings in Subicwater and Sewerage Co. Inc.
They said the transaction is priced at P210 per share. The 10-percent stake in question covers the water supply of 44,000 households in the area.
Incorporated in 1995, DMCI holds the Consunji Group’s real estate and construction business (DMCI Project Developers Inc.), coal mining and exploration (Semirara Mining Corp.), power generation (DMCI Power Corp.) and nickel ore exploration (DMCI Mining Corp).
DMCI’s stake in Maynilad Water Services Inc. has been reduced to 25.24 percent from 40.98 percent since DMCI sold its 16-percent Maynilad stake to a unit of Marubeni Corp.