DMCI Holdings, Inc. saw its attributable profit decline by a fourth in the first three months of 2019, weighed down by lower earnings from Semirara Mining and Power Corp. (SMPC).
In a regulatory filing, the Consunji-led holding firm tallied a net income attributable to the parent of P2.87 billion, 25.6% lower than the P3.86 billion it realized in the same period a year ago. Revenues also dipped 3.2% to P19.65 billion.
DMCI Holdings noted that all units, except for SMPC, generated healthy returns for the quarter.
SMPC’s net income fell 49% to P2.33 billion, bulk of which came from its coal segment in addition to contributions from Southwest Luzon Power Generation Corp. (SLPGC) and SEM-Calaca Power Corp. (SCPC). Given DMCI Holdings’ 56.65% interest in SMPC, it contributed P1.4 billion in net income to the parent.
The coal business was affected by the drop in global coal prices by 18% to P2,272 per ton this year, even as export sales went up four percent to 3.55 million tons.
SCPC unit 1 failed to contribute to revenues as it has been closed since December 2018 for maintenance and upgrade operations. Its second unit will also be closed until the first one becomes available.
The company further added that SLPGC Unit 3 was down for 29 days in the first quarter, while Unit 4 was placed on maintenance shutdown mid-January, ahead of its planned maintenance shutdown in the middle of the year. All this led to a loss of P95 million for the power segment.
For DMCI Project Developers, Inc., which commercially operates as DMCI Homes, net income contribution to the parent stood at P481 million, five percent higher year on year.
Revenues of DMCI Homes, however, went down by two percent to P4.4 billion, after sales and reservations dropped 27% to P11.1 billion. The company attributed the decline to the timing of project launches, as it only unveiled one project in Quezon City during the period.
DMCI Homes will be launching more projects in Metro Manila, Cebu, and Davao for the rest of the year.
Maynilad Water Services, Inc. contributed P436 million to DMCI Holdings’ net income, 13% higher year on year. The west zone water concessionaire reported a 9.7% increase in water and sewer service revenues to P5.6 billion due to higher billed volumes and a favorable customer mix.
The construction business under D.M. Consunji, Inc. grew its net income by seven percent to P359 million, as construction revenue also increased 22% to P3.9 billion. Its order book reached P25.8 billion by end-March, eight percent lower year on year.
Meanwhile, the conglomerate’s off-grid power business under DMCI Power Corp. booked a net income contribution of P100 million, 32% higher than the P76 million it posted in the same period a year ago.
DMCI Mining Corp.’s net income contribution soared 129% to P103 million, after a 63% uptick in revenues thanks to higher nickel shipments for the quarter.
Shares in DMCI Holdings dropped 1.52% or 15 centavos to close at P9.71 each at the stock exchange on Thursday. — Arra B. Francia