CONSUNJI-LED conglomerate DMCI Holdings, Inc. saw its nine-month net income in 2017 surge 19 percent to P11.7 billion from last year’s P9.9 billion on the stronger revenue contributions of its core businesses.
For the third quarter alone, DMCI recorded consolidated net income of P4.1 billion, an improvement of 18 percent from the same period last year.
“We expect the slowdown in our coal energy business to temper our growth in the last quarter,” DMCI Chairman and President Isidro Consunji said.
“Operating costs will be higher due to higher stripping ratio. One of the power plants is also on shutdown, which will last until mid-December,” he added.
The company also expects its real estate business to report weaker earnings despite strong sales “because we can only recognize revenues from projects once the collected payments reach our revenue recognition threshold.”
For the first nine months, it said net income contribution from mining unit Semirara Mining and Power Corp. rose 21 percent to P6.5 billion backed by a 25 percent increase in coal prices alongside a 9 percent hike in energy sales.
Meanwhile, DMCI Mining Corp.’s net earnings grew 98 percent to P117 million as operating costs fell 53 percent.
DMCI Homes registered 59 percent higher profit to P2.7 billion. Net income from construction unit DM Consunji, Inc. grew 16 percent to P851 million as more ongoing projects were completed.
However, DMCI Power booked a 5 percent decline in profit to P324 million due to the expiration of its income tax holiday for its Masbate operations, while net earnings from Maynilad dropped 20 percent to P1.2 billion due to, among others, the delayed implementation of its tariff adjustment.
DMCI Holdings is a holding company that consolidates all the construction businesses, construction component companies, and related interests of the Consunji family.