DMCI net income jumps 5% in 1st quarter

DMCI HOLDINGS, Inc. posted a first-quarter net income of P4.3 billion, up 5% compared with the P4.1 billion in the same period last year, with higher coal prices offsetting the setback in the power business.

“Our power generation business suffered some setbacks this quarter because of the unplanned outages of Sem- Calaca Power Corp. and Southwest Luzon Power Generation Corp.,” said DMCI Holdings Chairman and President Isidro A. Consunji said in a statement.

“But we believe that higher coal sales and average selling prices will more than offset the impact of these outages on our bottom line,” he added.

The higher income for the period comes as consolidated revenues grew 8% to P20.3 billion from P18.8 billion.

Aside from the higher coal prices, the listed diversified engineering conglomerate’s performance was also boosted by the increase in billed volume and construction revenues.

Main contributor Semirara Mining and Power Corp. (SMPC) reported a first- quarter net income of P4.6 billion, up 3% from last year’s P4.4 billion after a 24% increase in the average selling price of coal.

The listed subsidiary’s contribution to the parent firm increased by 3% to P2.6 billion from P2.5 billion.

DMCI Homes, Inc. registered an 11% drop in net income share to P848 million from P950 million because of a slowdown in revenue recognition.

The parent firm said the property unit recognizes revenues based on the progress of its development and once at least 15% of the contract price has been collected from the buyer, under the percentage of completion accounting method.

Maynilad Water Services, Inc. contributed P315 million, higher by 12% compared the previous year’s P282 million, largely after the 4.9% increase in billed volume and a 2.8% adjustment in the inflationary rate adjustment on its basic charge starting in January 2018.

Meanwhile, D.M. Consunji, Inc. recorded an 85% jump in net income contribution after the realization of variation orders from projects nearing completion, the parent firm said. Its share hit P336 million from P182 million previously.

Off- grid energy company DMCI Power Corp. accounted for a smaller share during the period at P76 million, down 12% from P87 million mainly because of the lower-than-expected provisional tariff granted to its Aborian power plant in Palawan.

“The company has a pending motion for recomputation with the Energy Regulatory Commission which is expected to be resolved soon,” it said.

DMCI Mining Corp.’s contribution increased by 41% to P45 million from P32 million, with the strong growth attributed to the shipment of higher grade nickel from old stockpile and lower depreciation costs.

Other income urged more than three times to P37 million from P11 million because of higher interest gains.