DMCI Holdings profit hits P6.7B in H1

Manila -- Diversified engineering conglomerate DMCI Holdings, Inc. reported a 22-percent decline in consolidated income for the first half of 2019 amid weak contributions of coal and power, construction, and mining businesses.

Its profit reached P6.7 billion in January to June from P8.6 billion the previous year.

For the second quarter alone, the conglomerate posted P3.8 billion in net income, down 20 percent year-on-year from P4.7 billion.

“We had a tough first-half because of lower average selling price of coal, higher replacement power costs, provisions for project cost overruns and lower average price for our lower grade nickel,” DMCI Holdings Chairman and President Isidro Consunji said in a statement.

“But we hope to curb the profit decline in the succeeding quarters,” he added.DMCI Holdings Vice President and Senior Finance Officer Brian Lim said they are optimistic about the second half of the year and the future.

“There are positive expectations like the NSCR (North-South Commuter Railway) (which) will generate future revenues in construction,” he said in a press briefing Tuesday night.

The Department of Transportation (DOTr) awarded the contract for the P54-billion NSCR Phase 1 project to the joint venture of D.M. Consunji Inc. (DMCI) and Taisei Corporation of Japan. The railway project will connect Tutuban in Manila and Malolos, Bulacan.

Meanwhile, net income contributions from Semirara Mining and Power Corporation (SMPC) dropped 26 percent from P4.6 billion to P3.4 billion during first half this year, owing to a 213-percent upturn in replacement power costs and lower average selling price of coal.

DMCI Homes recorded a 360 percent drop in net earnings contribution from P1.8 billion to P1.2 billion due mainly to the absence of one-time gain from the sale of land in 2018.

Income share from DMCI declined 35 percent from P676 million to P440 million due to provisions for cost overruns. Off-grid energy supplier DMCI Power contributed P233 million, a 9-percent improvement from P214 million last year. Higher energy sales to power cooperatives in Masbate, Palawan, and Oriental Mindoro accounted for the growth.

Attributable net income from DMCI Mining slipped 22 percent from P221 million to P173 million as the company shipped more lower-grade nickel at lower average selling price.

Net income contributions from affiliate Maynilad grew 16 percent from P950 million to P1.1 billion owing to the combined effect of billed volume and tariff increases. Other income during the first half surged by 43 percent from P88 million to P126 million because of higher interest income.