DMCI posts 22% profit growth in Q1 to P3.7B

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DIVERSIFIED engineering conglomerate DMCI Holdings (DMCI) booked P3.7 billion net profit for the first quarter of 2017, up 22 percent from the previous year, backed by the strong performance of its 56-percent owned subsidiary Semirara Mining and Power Corp. (SMPC).

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Core net income rose 26 percent, excluding a one-time gain of P111 million in 2016 for the partial sale of its stake in Subic Water.

“2017 will be a better year for us. We expect double-digit growth from our energy and real estate companies, and modest growth from construction and nickel mining,” DMCI Holdings President Isidro Consunji said in a disclosure to the Philippine Stock Exchange (PSE) on Friday.

Listed mining firm SMPC posted a 52 percent growth in net income to P4.42 billion, its highest quarterly income to date, accounting for 53 percent of the parent’s earnings for the period.

However, earnings contributions from its other units were lower. Net income share from its DMCI Homes unit dropped 11 percent to P594 million, mainly due to deferred recognition of revenues from its high-rise projects, which normally take three to four years to complete.

Net income share from unit Maynilad fell 30 percent to P282 million this quarter on delays in the implementation of the rate rebasing tariff.

Net income contribution from core investment DM Consunji, Inc. also slipped 8 percent to P182 million due to lower revenues and reduced margins from its infrastructure projects.

Earnings contribution from off-grid energy supplier DMCI Power fell 11 percent to P87 million following the expiration of its income tax holiday for its Masbate operations.

But another unit, DMCI Mining, returned to profitability in the first quarter, contributing P32 million to the parent company.

DMCI Holdings holds the Consunjis’ businesses and investments in construction (DM Consunji), power and mining (DMCI Power Inc., Semirara Mining and Power Corp., DMCI Mining), property development (DMCI Homes, DMCI Project Developers Inc.), and water utilities (Maynilad Water Services Inc.)

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