DMCI net drops 20% to P24.9B; ‘sharp corrections in prices cited

DMCI Holdings Inc. said Wednesday that its net income had fallen by 20 percent to P24.9 billion last year, from 2022’s P31.1 billion, on lower contributions from the integrated energy, mining, and construction businesses.

Consolidated revenues reached P122.8 billion, down 14 percent from P142.6 billion a year earlier, the diversified engineering conglomerate said in a statement.

DMCI said the lower revenues were due to normalizing coal, nickel, and electricity prices, coupled with a decline in construction and real estate activities. A spike in revenue reversals due to canceled real estate sales also dampened revenue growth.

Fourth-quarter net income, however, grew 36 percent to P4.7 billion from P3.5 billion on the back of higher revenues and improved profit margins. Core earnings in the quarter also climbed by 30 percent to P4.6 billion from P3.6 billion previously.

“We saw sharp corrections in commodity and energy prices in 2023,” said Isidro Consunji, DMCI Holdings’ chairman and president.

But increased production and sales helped the conglomerate “prevent a severe decline in our profitability,” he added.

In the real estate business, DMCI Homes contributed core earnings of P4.6 billion last year, 2.0 percent higher than P4.5 billion in 2022, thanks to “better selling prices and higher income from rental and forfeiture fees.”

Affiliate Maynilad’s contributions rose 42 percent to P2.1 billion from P1.5 billion, driven by increased water production, billed volume, and an adjusted tariff.

DMCI Power also posted higher contributions of P959 million, up 29 percent from P742 million the year before, on “increased gross generation and electricity dispatch.”

In the construction business, D.M. Consunji Inc. posted net income of P573 million, down 2.0 percent from the prior year’s P587 million because of “lower project accomplishments on fewer ongoing projects.”

DMCI Mining’s contribution also declined by 49 percent to P655 million from P1.3 billion previously on lower nickel prices and increased shipping costs.

The contribution from Semirara Mining and Power Corp. was also lower by 30 percent, to P15.8 billion from P22.7 billion, due to the “combined effect of all-time high coal shipments and electricity sales amid stabilizing prices.”

DMCI Holdings shares fell by 34 centavos, or 2.94 percent, to P11.22 each on Wednesday.