MANILA, Philippines — Diversified engineering conglomerate DMCI Holdings saw a nine-percent drop in its net income to P5.1 billion in the first quarter from P5.6 billion in the same period last year on the back of lower contributions of integrated energy company Semirara Mining and Power Corp. (SMPC) and integration of its newly acquired cement business.
DMCI said stronger results from the real estate, water, nickel mining and off-grid power, however, helped cushion the impact of stabilizing coal prices and the ongoing integration of Concreat Holdings Philippines.
“Market conditions today are very different from five years ago, but our businesses have adapted well,” DMCI Holdings chairman and CEO Isidro Consunji said.
“We continue to pursue organic growth across the portfolio while laying the groundwork for a successful transformation of our cement operations,” he said.
For the first quarter, the earnings contribution of SMPC declined by 31 percent to P2.5 billion from last year’s P3.7 billion due to stabilizing coal prices and a higher share of lower-grade coal shipments.
DMCI Homes recorded a five-percent surge in contribution to P1.4 billion from P879 million due to newly recognized accounts, higher income from forfeitures and rentals and more substantial finance income.
Associate Maynilad Water Services also increased its contribution by 39 percent to P926 million, supported by higher average effective tariffs and lower cash costs.
Strong operations and better selling prices allowed DMCI Mining to swing to a P409-million net income from a P22 million net loss last year.
DMCI Power contributed P270 million, up by two percent from P264 million, fueled by increased energy sales and the expansion of bunker-fired capacity in Palawan.
D.M. Consunji Inc., meanwhile, recorded a lower contribution of P50 million from last year’s P98 million following higher cash costs, project delays, and conservative revenue recognition practices.
Reduced volumes and higher interest expenses resulted in a net loss contribution of P546 million for Concreat Holdings Philippines.
Concreat has transitioned under the DMCI Group, with integration efforts underway to support future improvements.