CONSUNJI-LED conglomerate DMCI Holdings, Inc. is spending 19 percent more for its capital expenditure (capex) this year to P40.6 billion to further expand its business.
In a news conference in Taguig City on Tuesday, DMCI Holdings Chief Finance Officer Herbert Consunji said a big chunk of the expenditure, equivalent to P16 billion, will be allocated to property arm DMCI Homes, Inc.
The company is spending P13 billion for Semirara Mining and Power Corp. and P2 billion for its Masbate coal-fired power plant, which is currently being revived. The remainder will go to its water unit Maynilad Water Services, Inc.
For 2018, DMCI Homes is targeting higher reservation sales of P40 billion compared to last year’s target of P31 billion.
The company is set to launch eight residential towers in Metro Manila and Davao City this year following strong reception from buyers.
DMCI Homes President Alfredo Austria said the company racked up P21 billion sales at as of end-April 2018, of which P6 billion came from mainland Chinese buyers.
“Chinese buyers don’t buy in all [of our]locations. They are also selective. It just so happened that we launched some projects which are near BGC (Bonifacio Global City) and Makati that were very attractive to them,” he said.
Meanwhile, Semirara Mining and Power remains optimistic about its prospects for the year despite maintenance work on four power plants. In the first quarter, the second unit of Sem-Calaca Power Corp. (SCPC) was offline for most of the quarter for scheduled preventive maintenance and technical inspection. It resumed operations last March 17.
Southwest Luzon Power Generation Corp. (SLPGC) Unit 2 also underwent maintenance work, resuming operations on April 16. Unit of SCPC and Unit 1 of SLPGC also went offline in early March. The former resumed operation in March 17 while the latter is set to return to full operation in August.
DMCI Holdings saw first quarter net income grow 5 percent to P4.3 billion on consolidated revenues of P20.3 billion, up 8 percent from a year earlier.
DMCI Holdings’ shares closed up P0.28 at P10.98 each on Tuesday.