Diversified engineering conglomerate DMCI Holdings Inc. on Friday reported a net profit of P3.1 billion in the first quarter of 2015, up 18 percent in the same period last year, fuelled by the robust growth of its power, real estate and water businesses.
Consolidated revenues rose 21 percent to P15.9 billion in the same period, compared to P13.1 billion in the first quarter last year.
Income contribution from Semirara Mining and Power Corp. (SMPC) reached P1.4 billion, an increase of about 24 percent from P1.1 billion last year due mainly to the strong performance of its power generation segment.
Buoyed by the double-digit growth from the power sector, the company is eyeing to build more plants.
“We want to build two to three power plants. That’s a billion dollars,” DMCI Holdings Chairman and President Isidro Consunji told reporters at a press briefing to report first quarter results.
He said the company would invest only half the amount because it will partner with another group in the venture. “We budgeted $3 billion at hindi mauubos iyon for off-grid. And then $1 billion for on-grid. Iyan iyong budgeted expenditure, hindi mauubos yun ha, three years bago maubos iyon.”
SMPC’s gross power generation surged 107 percent to 1,014 GWh in this year’s first quarter, from 489GWh during the same period last year. Its coal sales also grew 4 percent year-on-year to 2.4 million metric tons (MMT).
The off-grid power supplier, DMCI Power Corp (DPC), reported a 42-percent increase in net income due to higher energy dispatch to the electric cooperatives from the power plants in Masbate and Palawan.
The company said its first quarter net income rose to P74 million, compared to P52 million last year, and is upbeat income would grow by about 52 percent for the whole year.
From P243 million, DPC said it expects net income to reach P370 million by year-end.
This is due to the full-year commercial operations of its recently-constructed 15-megawatt (MW) diesel power plants in Calapan City, Oriental Mindoro.
DPC supplies electricity to missionary communities through power supply contracts with electric cooperatives. It currently has presence in the island provinces of Masbate, Palawan and Oriental Mindoro.
The growth in profitability was due to the increased electricity demand from electric cooperatives, and expansion to the municipality of Quezon and Roxas in Palawan.
Nestor Dadivas, DMCI Power Corp. president said the company expects to gain at least P1 billion profit from its power investments.
“P1 billion in investments is just for power,” he told reporters.
Real-estate projects, water business
Maynilad Water Services Inc. continued to benefit from its improved operational efficiency, causing its net earnings contribution to rise 10 percent from P495 million to P545 million.
DMCI Homes reported a net income growth of 11 percent in the first quarter from revenues from completed high-rise projects.
From P762 million in the 2014 first quarter, profits increased to P845 million this year. Excluding the effect of a gain on the sale of undeveloped lots last year, the real-estate firm’s net income actually rose by 77 percent during the said period.
The mid-segment real-estate developer is projecting a P3.6- billion increase in net income for 2015, an 11 percent increase from last year’s P3.2 billion.
The expected growth will come from unit sales in five projects to be launched this year, and 16 other projects, construction of which is on-going.
The projects to be launched include Ivorywood and Maple Place in Taguig, Bristle Ridge in Baguio, Valenia Residences in Mandaluyong and Lumiere Residences North in Pasig.
Sales and reservations for this year are expected to reach P22 billion from last year’s P20 billion.
“We are projecting P22 billion in sales and reservation this year. We expect to deliver 3, 500 units,” Consunji said.
For 2015, DMCI Homes is allocating P5 billion purely for land acquisition. Development costs are expected to reach P6 to P7 billion.
Earnings from D.M. Consunji, Inc. rose 22 percent to P196 million compared to P161 million during the same quarter last year, due to higher revenues from its infrastructure projects.
DMCI Mining reported net loss of P24 million due to the weak global nickel ore price and normally reduced mining operations during the early part of the year. Mining activity is expected to ramp up production and shipments by the second quarter of this year.