CONSUNJI-LED conglomerate DMCI Holdings, Inc. saw a 27% drop in its net income for the second quarter (Q2) to P4.02 billion from P5.53 billion a year ago due to lower contributions from its core units.
DMCI attributed the lower second-quarter profit to weaker performances in its coal, real estate, and construction businesses, as well as the ongoing integration of its cement operations, the company said in a regulatory filing on Wednesday.
However, the conglomerate said the decline in income was mitigated by higher earnings from its water distribution, nickel mining, and off-grid power units.
Total revenues for April to June increased by 6% to P29.74 billion from P28.09 billion a year earlier, led by contributions from the cement business, stronger nickel and off-grid power sales, and higher construction accomplishments.
“Business transition and integration take time, but our diverse business mix and engineering ecosystem continue to support the group,” DMCI Chairman and Chief Executive Officer Isidro A. Consunji said.
“We believe that the improvements we are making today will lead to meaningful value for our stakeholders in the long run,” he added.
Coal subsidiary Semirara Mining and Power Corp. accounted for P2.3 billion in earnings, down by 32% from P3.4 billion, due to lower selling prices amid soft energy market conditions.
The real estate business led by DMCI Project Developers, Inc. contributed P678 million in profit, down by 8% from P737 million, due to higher operating and finance costs amid improved revenue recognition from newly qualified accounts.
The earnings contribution from associate Maynilad Water Services, Inc. grew by 33% to P973 million from P732 million, driven by an increased average effective tariff and prudent cost management.
DMCI Power Corp. accounted for P374 million in profit, higher by 5% from P355 million, on the back of higher energy sales and the addition of new bunker-fired and wind power capacities in Palawan and Antique, respectively.
Mining subsidiary DMCI Mining Corp. generated P344 million in net income, a turnaround from a P43-million net loss, driven by better selling prices and improved operational performance with the full activation of Zambales Chromite Mining Co.
The construction business led by D.M. Consunji, Inc. contributed P18 million, down from P250 million, due to higher project costs, delays, and conservative revenue recognition.
Cement subsidiary Concreat Holdings Philippines Inc. posted a P682-million net loss due to higher interest expense and softer revenues. The company’s recovery efforts are ongoing, with improvements aimed at increasing sales and lowering costs.
For the first half, DMCI posted an 18% decline in consolidated net income to P9.1 billion from P11.1 billion a year ago.
Total revenues climbed by 11% to P61.6 billion from P55.52 billion a year earlier on construction accomplishments from new projects, higher real estate accounts qualifying for revenue recognition, improved nickel shipments and prices, and one full quarter of cement revenue contribution.
DMCI shares rose by 0.20%, or two centavos, to P10.22 apiece on Wednesday. — Revin Mikhael D. Ochave
