CONSUNJI-LED DMCI Holdings Inc. (DMCI Holdings) saw its first-half net income plunge by 29 percent to P11.1 billion, from P15.6 billion a year earlier, on lower revenue contributions from its mining, power, real estate, and construction businesses.
Second quarter (Q2) net income also dropped by 32 percent to P5.5 billion from P8.1 billion, DMCI said in a stock exchange filing on Tuesday.
“The drop was largely due to weaker performances from its integrated energy, real estate and nickel mining subsidiaries. Improved results from its water, off-grid power and construction businesses partially offset the downturn,” it said.
DMCI Holdings Chairman and President Isidro Consunji said “we are now in the new normal. Market prices and global supply chains have normalized, so our challenge is to strategically manage costs, optimize operational efficiency and capitalize on synergies across our business units.”
Mining unit Semirara Mining and Power Corp. (SMPC) delivered an income contribution of P3.4 billion, down 41 percent from last year’s P3.4 billion.
“Despite our efforts to manage costs and improve operational efficiencies, the persistent decline in global coal and electricity prices has significantly impacted our financial performance,” SMPC President and Chief Operating Officer Maria Cristina Gotianun said in a separate disclosure.
DMCI Homes’ Q2 income contribution, meanwhile, stood at P737 million, down 43 percent from P1.3 billion last year, on lower real estate sales coupled with higher operating expenses.
This, however, was “partly offset by the increased contributions from joint venture construction revenues, rentals and forfeitures.”
DMCI Mining swung to a net loss of P43 million in Q2 from a net income of P250 million last year “on weaker market prices, reduced shipments, and costs from its Palawan mine.”
However, the water, power, and construction businesses made positive revenue contributions in the three months to June.
Associate Maynilad Water Services contributed P732 million to group revenue, up 54 percent from P474 million last year, on increased billed volume and higher average effective tariff, among others.
DMCI Power contributed P355 million in Q2, 54 percent higher than last year’s P231 million, on increased power dispatch and lower direct costs, while construction arm D.M. Consunji Inc. added P240 million to group revenues, up 73 percent from P43 million a year ago.
DMCI Holdings shares dropped 1.64 percent on Tuesday to close at P11.16 each.
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