DMCI to deliver ‘resilient performance’ in 2024 — chairman

LISTED conglomerate DMCI Holdings, Inc. on Wednesday said it expects a resilient performance this year, citing factors like cooling inflation, stable interest rates, and modest growth in the domestic energy market.

The company is “cautiously optimistic” on the group’s performance this year, DMCI Holdings Chairman and President Isidro A. Consunji said in a statement.

“Slowing sales and manufacturing in China could keep a lid on commodity prices. With less demand and activity, we expect prices to be somewhat lower than last year,” Mr. Consunji also said.

“Overall, we expect the DMCI group to deliver another resilient performance this year.”

Mr. Consunji said interest rates will play a “favorable role” for the DMCI Group in 2024, as they are likely to stabilize or decrease in the latter part of the year.

Lower interest rates could ease borrowing costs and urge economic activities, he noted.

During its December meeting, the Bangko Sentral ng Pilipinas kept its benchmark rate steady at 6.5%.

The country’s inflation rate averaged 6% in 2023, higher than 5.8% in 2022, despite dropping to 3.9% in December.

Mr. Consunji said the DMCI Group had “a fairly good” 2023 despite global market uncertainties, volatile prices, and high-interest rates, citing improvements in the conglomerate’s mining, energy, construction, and real estate businesses.

“We ended 2023 with all-time high coal shipments and off-grid energy sales. Our sole operating nickel mine also posted record sales during the year.”

DMCI’s Zambales Diversified Metals Corp. was able to ship 16% more nickel ore in 2023, at 1.68 million wet metric tons (WMT), from 1.45 million WMT in 2022.

The conglomerate has presence in the mining sector through DMCI Mining Corp., as well as in the energy sector via DMCI Power Corp. and Semirara Mining and DMCI Power Corp.

Mr. Consunji also mentioned that the government’s handling of infrastructure projects is a “positive factor” for the group, saying that “improved scheduling and payment processes for these projects are expected to hasten construction activities, a development that could have ripple effects across various sectors of the economy.”

DMCI Holdings has presence in the construction businesses through D.M. Consunji, Inc. —