DMCI’s income rises 84% as business units grow

DMCI Holdings, Inc. reported on Tuesday an 83.8% increase in third-quarter core net income to P7.37 billion from P4.01 billion a year ago, driven by growth in its coal, power, and real estate businesses.

Including non-recurring gains, its consolidated net income rose for the quarter rose by 84% to P7.34 billion from P3.99 billion previously.

“All of our subsidiaries delivered robust results during the nine-month period,” Isidro A. Consunji, chairman and president of DMCI Holdings, particularly citing Semirara Mining and Power Corp. (SMPC) in the firm’s media release.

“But we expect to feel some profit weakness in the last quarter because of higher raw material costs and construction slowdown,” he added.

DMCI Holdings said non-recurring items this year and last year mainly came from Maynilad Water Services, Inc.’s donations, severance pay, and loan pre-payment fees.

Revenues for the third quarter increased by 24.5% to P32.83 billion from P26.37 billion in the same period last year.

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For the nine-month period, its net income doubled to P27.63 billion from P13.48 billion a year ago, while its revenues climbed by 42.8% to P114.30 billion from P80.02 billion in the same period last year.

Among its businesses, SMPC accounted for the biggest share with P20.38 billion, up from P5.95 billion last year, on high coal production and higher spot electricity sales volume.

DMCI Project Developers, Inc. (DMCI Homes), the firm’s real estate arm, contributed P3.85 billion as selling prices were higher by 19.2% compared with P3.23 billion a year ago.

Meanwhile, Maynilad’s contribution declined by 1% to P1.11 billion from P1.12 billion a year ago on lower billed volume growth and higher cash operating expenses.

DMCI Mining Corp.’s contributions climbed by 10.6% to P1.09 billion from P983 million last year, pulled up by higher average selling price amid the elevated exchange rates, which helped to tame the impact of lower shipment due to the depletion of its Berong mine.

Contributions from DMCI Power Corp. rose by 28.3% to P549 million from P428 million on higher electricity sales.

SMPC, DMCI Homes, and DMCI Mining accounted for 92% of DMCI Holdings’ net income.

Meanwhile, DMCI Holdings declared an additional cash dividend of 72 centavos per share, which is scheduled for pay out this month.

On Tuesday, shares in the company closed 16 centavos or 1.67% lower to end at P9.43 apiece. — Ashley Erika O. Jose