DMCI nets P2.8 billion in Q3
DMCI Holdings, Inc. on Wednesday said it booked a net income of P2.8 billion in the third quarter, 47% higher year-on-year, which was attributed to “normalized coal operations” of Semirara Mining and Power Corp. (SMPC).
In a statement, DMCI said core earnings in the third quarter went up 24% to P2.6 billion, excluding the P164-million non-recurring loss from the company’s shares in accelerated depreciation of two units of Sem-Calaca Power Corp. and the P249-million one-time gain from its share in insurance proceeds of Southwest Luzon Power Generation Corp.
However, DMCI Holdings Chairman and President Isidro A. Consunji said the quarterly improvement may not be enough to help the company recover from the impact of shutting the two Calaca units, as well as the slump in coal prices.
“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,” he was quoted in the statement as saying.
In the nine months to September, DMCI Holdings’ net income went down 11% to P9.31 billion due to declines in its mining and construction businesses. Core net income likewise fell 10% to P9.31 billion during the three-quarter period.
SMPC’s net income during the nine months fell 14% to P4.66 billion, coming from a 17% drop in power generation and a 22% reduction in coal prices.
DMCI Project Developers, Inc., which operates DMCI Homes, posted flat earnings during the period at P1.8 billion due to the slow pace of completion of ongoing projects.
Contributions from its affiliate Maynilad Water Services, Inc. improved 6% to P1.57 billion during the nine months as it saw a 2% uptick in billed volume, a 2.7% increase in basic charge and lower inflation rate during the period.
Construction unit D.M. Consunji, Inc. saw earnings slump 30% to P664 million during the nine months to September. The company said this is due to delays in right-of-way acquisitions and unrealized variation orders from near-completion projects.
Earnings from DMCI Power Corp. inched up 1% to P341 million at the end of the nine-month period. Lower electricity dispatch in Oriental Mindoro in the third quarter and the expiration of its supply contract in Sultan Kudarat last December weighed on its bottom line.
DMCI Mining Corp.’s income contribution declined by 35% in the nine-month period to end at P87 billion, as it shopped lower-grade nickel that generated smaller sales due to lower average prices.
Contributions of the parent company and its investments went up 8% to P185 million during the three-quarter period, attributed to higher interest income.
Shares in DMCI shed 0.16 points or 1.99% to close at P7.90 each on Wednesday. — Denise A. Valdez
Source : https://www.bworldonline.com/dmci-nets-p2-8-billion-in-q3/
