DMCI’S quarterly profit hits record on commodities rally

Engineering conglomerate DMCI Holdings inc. on Wednesday reported that its income for the first quarter more than doubled to P11.3 billion from the previous year’s P4.3 billion, its highest-ever quarterly profit.

The company said its record performance was mainly driven by the robust operating results of its coal, nickel and power businesses amid rallying commodities and electricity spot prices.

Consolidated core net income surged by 177 percent to P11.3 billion from P4.1 billion last year, which excludes a non-recurring gain of P179 million last year mainly from the deferred tax re-measurement impact of the Corporate Recovery and Tax Incentives for enterprises Act on Maynilad Water Services Inc.’s service concession asset and a P12-million gain on the sale of land of DMCI Homes.

“Semirara exceeded our expectations while DMCI Mining and DMCI Power both grew double-digits,” DMCI Chairman and President Isidro A. Consunji said.

“But our construction and real estate businesses are showing signs of slowdown because of knock-on effects of the pandemic and Russiaukraine war.”

net income contribution from Semirara Mining and Power Corp. rose by sixfold to P8 billion from P1.3 billion on the back of recordhigh coal production, shipment and average selling prices, and further boosted by higher spot electricity sales at elevated prices.

DMCI Homes contributed P1.4 billion, a 7 percent decline from P1.5 billion owing to lower construction accomplishments, fewer new accounts that qualified for revenue recognition and higher sales cancellations.

net income contribution from DMCI Mining grew 20 percent to P499 million from P415 million last year on higher nickel ore shipment and foreign exchange rates.

d.m. Consunji Inc., the construction firm, recorded a 7-percent drop in net income contribution to P367 million from P393 million mainly due to the absence of a one-time related party transaction for a joint venture infrastructure project.

Maynilad contribution rose by 11 percent to P319 million from P287 million on lower personnel, utilities and interest expenses.

DMCI Power, the off-grid energy producer, added P132 million, a 12-percent jump from P118 million last year because of higher generation and sales across all its service areas.

Income from parent and others fell 38 percent to P8 million from P13 million on lower interest income.