DMCI earning falls 78%
Diversified engineering conglomerate DMCI Holdings, Inc. recorded a 78 percent decline in earnings to ₱616 million in the first quarter of the year from ₱2.7 billion in the same period of 2019.
In a disclosure to the Philippine Stock Exchange, the firm said earnings dropped as all of its businesses delivered weak performances during the period.
Excluding a nonrecurring losses core net income dropped 64 percent from ₱2.8 billion to ₱1 billion in the first quarter of 20202.
One-time losses consisted of ₱414 million due mainly to sales cancellations for a DMCI Homes project in Davao City and a net loss of ₱91 million representing the company’s share in the accelerated depreciation of Calaca Units 1 and 2 last year.
“Our consolidated results were weighted down by operational headwinds, low market prices and the initial effects of the enhanced community quarantine (ECQ),” said DMCI Holdings Chairman and President Isidro A. Consunji.
He added that, “We expect the succeeding quarters to be even more challenging because of the full impact of the coronavirus containment measures.”
Core net income contributions from Semirara Mining and Power Corporation contracted 51 percent from ₱1.3 billion to P623 million owing to a 16 percent drop in average coal prices and a 27 percent drop in average electricity prices.
DMCI Homes fell into negative territory following a slowdown in revenue recognition due to timing of collections and lower construction accomplishments as a result of the ECQ, as well as the increase in construction costs related to the dress-up of units completed in prior years.
From a net income of ₱481 million, it recorded a first-quarter core net loss of ₱197 million.
Lower margins for a number of projects, higher depreciation and productivity losses due to the ECQ resulted in a 53 percent reduction in net income contribution from D.M. Consunji, Inc., from ₱359 million to ₱170 million.
DMCI Power contributed P97 million, a 3 percent year-on-year slide from ₱100 million because of lower electricity dispatch in favor of hydropower plants in Oriental Mindoro.
Earnings contribution from DMCI Mining dropped 75 percent from ₱103 million to ₱26 million due to the shipment of lower grade nickel which fetched lower prices in the market.