DMCI Holdings income down 69% on low market prices
DMCI HOLDINGS, INC. reported a 69% decline in total net income to P2 billion in the first semester as it was “severely” affected by low market prices.
The listed firm said its second-quarter earnings were down 62% to P1.4 billion. In the previous quarter, its net profit fell by 78% to P616 million.
Between January and June, the diversified conglomerate’s core net income, which excludes one-off items, decreased by 61% to P2.6 billion.
“Most of our businesses showed resilience during the lockdown period since they belong to essential industries like power, mining and water distribution,” DMCI Holdings Chairman and President Isidro A. Consunji said in a statement on Monday.
“Unfortunately, we were severely affected by low market prices,” the official said, citing that these businesses “remained profitable” in the period.
Semirara Mining and Power Corp. (SMPC) delivered P1.3 billion as core income contribution, which is lower by 64%, due to decreases in sales and selling prices from its coal and power businesses.
DMCI Homes’ core profit share went down 97% to P38 million as the pandemic-induced quarantine prevented it from accomplishing constructions and recognizing revenues.
Quarantine policies also dragged the income share of D.M. Consunji, Inc. by 79% to P92 million.
Further, west zone concessionaire Maynilad Water Services, Inc. brought in P847 million to its parent’s core income, falling 24% from the previous period, as its commercial and industrial sales volume sharply dropped during the lockdown months.
Meanwhile, only DMCI Power Corp. and DMCI Mining Corp. boosted their income shares by 10% and 6%, respectively. The former chipped in P256 million on higher power sales in Palawan and reduced fuel costs, while the latter brought in P184 million from increased nickel ore exports during the period.
To preserve cash amid a grueling business environment brought by the pandemic, DMCI Holdings decided to cut its capital expenditure by 52% to P19.4 billion, with its real estate business enduring the most of the reduction, forcing it to cap its acquisition spending for the rest of the year.
On Monday, both shares in DMCI Holdings and SMPC dropped by 3.78% and 8.20%, respectively, to close at P3.56 and P9.40 apiece. — Adam J. Ang
