Semirara weighs down DMCI earnings

Diversified conglomerate DMCI Holdings, Inc. reported a consolidated net income of 12.9 billion for the first three months of 2019, a 26 percent drop from 13.9 billion in the same period last year weighed down by the weak performance of Semirara Mining and Power Corp.

In a disclosure to the Philippine Stock Exchange, the firm said all its business segments, except for Semirara Mining and Power Corporation, delivered healthy returns for the period.

Despite the weak performance of SMPC during the first quarter of 2019, DMCI Holdings saw its consolidated revenues drop by only 3 percent from 120.3 billion to 119.7 billion due to the strong performance of its construction, off-grid power and nickel mining businesses.

Net income contributions from SMPC fell 49 percent from 12.6 billion to 11.3 billion, owing to an 18 percent decline in the average selling price of coal and a 21 percent drop in total power generation.

DMCI Homes contributed 1481 million, a 5 percent improvement from restated first-quarter earnings of 1460 million last year driven by lower cost of real estate development during the period.

Meanwhile, share in net income from affiliate Maynilad jumped by 39 percent from 1315 million to 1438 million due to the combined effect of higher billed volume, a more favorable customer mix, inflationary adjustment on the basic charge beginning January 1, 2019 and tariff adjustment of 2.7 percent starting October 1, 2018.

Premier construction firm D.M. Consunji, Inc. delivered a 7 percent growth in net income share from 1336 million to 1359 million on the back of higher accomplishment of its ongoing infrastructure projects.