DMCI HOLDINGS’ 2017 PROFIT UP 16% TO P14.8B

STRONG growth from core businesses bolstered conglomerate DMCI Holdings, Inc.’s consolidated net income in full year 2017 by 16 percent to P14.8 billion versus the P12.7 billion registered in 2016.

In a disclosure on Friday, DMCI said it owed its higher earnings last year to the strong performance of its coal energy, real estate, construction, and nickel mining businesses.

Excluding a one-time gain of P111 million from the sale of its 10 percent equity in Subic Water and Sewerage Co. in 2016, core net income grew by 17 percent from P12.6 billion to P14.8 billion.

Net income contribution of Semirara Mining and Power Corp. jumped 15 percent in 2017 from P6.9 billion to P8 billion on the back of a 20 percent increase in average coal prices coupled with a 21 percent hike in gross electric output.

For the fourth quarter alone, the percent year-on-year to P3.1 billion from P2.8 billion.

Property arm DMCI Homes registered a 47 percent increase in - ings of P2.4 billion in 2016 to P3.6 billion in 2017.

Construction unit DM Consun slightly over P1 billion from the P938 million a year earlier due to lower operating costs, favorable settlement of pending claims and earlier than expected completion of some minor projects.

Mining subsidiary DMCI Mining million from a P65 million net loss in operating costs and after shipping 525,000 wet metric tons (WMT) of nickel ore from its old inventory.

“2017 was a challenging year for us but we were able to meet our earnings target of doubledigit growth,” DMCI Holdings Chairman and President Isidro Consunji said.

- mance will likely be more modest because of tapering electricity rates and the unresolved issues in our nickel mining and water businesses. But we see strong growth from our coal production and real estate segments,” he added.

Meanwhile, off-grid energy busi drop 15 percent last year to P359 million from P424 million in 2016 primarily due to the expiration of its income tax holiday for its Masbate operations.

Maynilad contracted 12 percent, from P1.9 billion to P1.6 billion, because of the delayed implementation of its tariff adjustments.