MANILA, Philippines — Lower contributions from various subsidiaries coupled with a net loss in the nickel mining business dragged down the earnings of the Consunji Group’s diversified engineering conglomerate DMCI Holdings Inc. in the first half.
DMCI saw its net income drop by 29 percent to P11.1 billion in the first semester from P15.6 billion in the same period last year largely due to reduced contributions from the coal mining, on-grid power, real estate and construction units.
DMCI said stronger contributions from the water and off-grid segments partially mitigated these impacts.
“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,” DMCI chairman and president Isidro Consunji said.
For the second quarter alone, DMCI’s net income fell by 32 percent to P5.5 billion from last year’s P8.1 billion, attributed primarily to weaker performances from its integrated energy, real estate and nickel mining subsidiaries.
The net income contribution from Semirara Mining and Power Corp. during the three-month period plunged by 41 percent year-on-year to P3.4 billion as the energy markets normalized.
Cushioning the impact of softer selling prices were higher coal and electricity sales volumes.
DMCI Homes contributed P737 million during the quarter, 43 percent lower than last year’s P1.3 billion as a result of lower real estate revenues and higher operating expenses.
These were partly offset by increased contributions from joint venture construction revenues, rentals and forfeitures, the company said.
DMCI Mining, on the other hand, swung to a net loss of P43 million in the second quarter from P250 million in income last year due to weak market prices, reduced shipments and costs incurred at its Palawan mine.
Associate Maynilad Water Services, meanwhile, posted a 54 percent jump in net income contribution to P732 million buoyed by increased billed volume, higher average effective tariff and slower growth in cash, non-cash and finance costs.
A record high contribution of P355 million was made by DMCI Power from April to June, up by 54 percent from P231 million in the same period in 2023, fueled by double-digit increases in power dispatch and lower direct costs from more affordable fuel use.
D.M. Consunji Inc. likewise saw its net income contribution soar by 73 during the quarter to P240 million on the back of lower cash and non-cash costs, reduced tax provisions and higher finance income.
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