MANILA -- Diversified engineering conglomerate DMCI Holdings, Inc. saw its earnings drop 11 percent from PHP10.4 billion to PHP9.3 billion in the first nine months of the year, owing to lower income contributions from Semirara Mining and Power Corporation (SMPC), D.M. Consunji, Inc. (DMCI), and DMCI Mining Corporation.
Core net income contracted by 10 percent from PHP10.3 billion to PHP9.3 billion during the period.
For the third quarter alone, DMCI Holdings booked a 47-percent jump in net income to PHP2.8 billion from PHP1.9 billion a year earlier.
The double-digit improvement was mainly attributable to the normalized coal operations of SMPC compared to last year when heavy rains in July and August caused a production slowdown.
Excluding a non-recurring loss of PHP164 million in 2018 due to the share in accelerated depreciation of Units 1 and 2 of Sem-Calaca Power Corporation and a one-time gain of PHP248 million this year mostly from the share in insurance proceeds received by Southwest Luzon Power Generation Corporation, DMCI Holdings recorded a 24-percent increase in third quarter core earnings from PHP2.1 billion to PHP2.6 billion.
“We had a strong third quarter but we still expect negative growth for the full-year because of the scheduled shutdown of Calaca Units 1 and 2, low coal prices, and lower construction accomplishments in our real estate business,” DMCI Holdings chairman and president Isidro Consunji said in a statement.
For the first nine months, core net income contributions from SMPC dropped 14 percent year-on-year from PHP5.4 billion to PHP4.7 billion following a 17-percent decline in power generation and a 22-percent drop in coal prices.
DMCI Homes contributed PHP1.8 billion core income, flat compared to the same period last year due to lower percentage of completion in ongoing projects.
Core net income contributions from affiliate Maynilad Water Services, Inc. grew 6 percent from PHP1.5 billion to PHP1.6 billion, owing to a 2-percent growth in billed volume, a 5.7-percent inflation rate adjustment and a 2.7-percent increase in basic charge.
Net income contributions from DMCI declined by 30 percent from PHP952 million to PHP664 million as a result of right-of-way acquisition delays and the absence of variation orders realized from projects nearing completion.
Off-grid energy business DMCI Power Corporation contributed PHP341 million, nearly unchanged from PHP337 million last year.
This was due to the combined effect of lower electricity dispatch in favor of hydropower plants in Oriental Mindoro during the third quarter and the expiration of the company’s supply contract in Sultan Kudarat last December 2018.
DMCI Mining recorded a 35-percent decline in net income contributions from PHP133 million to PHP87 million as the company shipped more lower-grade nickel at lower average selling price.
Contributions from DMCI Holdings and other investments during the first nine months grew 8 percent from PHP171 million to PHP185 million because of higher interest income. (PR)
