DMCI Holdings Inc.’s attributable net income more than doubled to P3.99 billion in the third quarter from P1.88 billion in the same period in 2020.
In a disclosure published on the Philippine Stock Exchange website on Tuesday, DMCI Executive Vice-President and Chief Finance Officer Herbert M. Consunji said the 113% increase in its earnings came on the back of “recovering demand and record-setting prices for coal, nickel and electricity, combined with higher accomplishments by the construction business.”
With this, DMCI’s nine-month net income soared by 245% to P13.48 billion from P3.91 billion in the same period last year.
DMCI’s core net income also jumped 113% to P4.01 billion in July to September 2021 from P1.88 billion last year, bringing its nine-month core profit 173% higher to P12.31 billion from P4.5 billion.
The company’s subsidiaries Semirara Mining and Power Corp. (SMPC) and DMCI Homes accounted for 79% of the holding firm’s core net income for the third quarter, while SMPC, DMCI Project Developers, Inc. (DMCI Homes), and Maynilad Water Services, Inc. contributed 84% of DMCI’s core net income for the first nine months of this year.
From July to September, SMPC’s contribution to DMCI’s core income soared by 428% to P2.28 billion from P432 million due to coal sales despite the power sector’s weak performance.
The global price of coal at the end of the third quarter of 2021 reached $181.12, raising the average selling price of SMPC’s coal by 82% to P2,831 per metric ton (MT) from P1,558 per MT.
Sales volume of coal also increased by 44% to 3.9 million MT (MMT) from 2.7 MMT due to the 50% drop in the power segment’s fuel consumption.
SMPC’s power plant output, however, dropped by 44% to only 873 gigawatt hours (GWh) from 1,657 GWh due to combined 167-day outages of its two units, but was covered by the 55% increase in selling prices to P4.09 per kilowatt hour (KWh) from P2.64 per KWh, “mainly due to a bilateral contract quantity of SCPC which had a fuel pass-through provision and sales to the Wholesale Electricity Spot Market,” it said.
On the other hand, DMCI Homes’ core net income contribution to its parent company declined by 14% to P900 million in the third quarter from P1.04 billion as its operating expenses climbed by 16% due to higher utilities and association dues from its unsold ready-for-occupancy units.
Its cost of sales also grew to P4.22 billion from P4.05 billion, while its revenues went up only by 4% to P5.85 billion.
Meanwhile, Maynilad’s core net income contribution improved by 7% to P406 million in the same quarter from P379 million despite a 6% lower bill volume to 129.6 million cubic meters (MCM) from 137.7 MCM following the imposition of an enhanced community quarantine in August, which caused commercial consumption to drop.
Its total noncash items, however, eased by 8% to P1.09 billion from P1.19 billion “with the absence of expected credit loss provisions.”
For this quarter, the DMCI Group said it “expects elevated coal and nickel prices to magnify the impact of more shipments.”
It added that the easing of mobility restrictions in Metro Manila may also drive business activities and commercial consumption, which could allow electricity and water prices to increase.
DMCI shares improved by 6.93% or 53 centavos to finish at P8.18 apiece on Tuesday. — Bianca Angelica D. Añago
