D.M. Consunji posts 83% net income drop in H1, order book up 152%

Construction and engineering contractor D.M. Consunji Inc. (DMCI) saw a drastic double-digit decline in its bottom line during the first six months of the year.

In a statement, DMCI reported that its net income stood at P79 million in the January to June period, down 83% from P469 million in the same period last year.

The company attributed sharp earnings drop to lower construction accomplishments as a result of the 76-day lockdown and higher operating costs from the implementation of COVID-19 containment measures in its job sites.

Nevertheless, DMCI registered an order book worth P658 billion, up 152% from P26.1 billion year-on-year.

Infrastructure projects and share in joint venture contracts accounted for the bulk of the order book at P18.3 billion and P24.9 billion, respectively.

Plant and utilities construction works reached P13.3 billion while building contracts totaled P7.5 billion.

Energy projects contributed the remaining P1.8 billion.

“Most companies are deferring or cancelling their projects scheduled for bidding this year because they want to preserve their cash. They are also waiting for the situation to stabilize before making any major investments,” DMCI president and CEO Jorge Consunji said.

“Fortunately, we have a strong order book that’s skewed towards infrastructure. It can sustain us for the next three years,” Consunji added.

Last year, the joint venture of DMCI and Taisei Corp. of Japan was awarded package 1 of the North South Commuter Railway (NSCR) project by the Department of Transportation (DOTr).

At the end of June this year, DMCI had a balance of work of P21.3 billion from the railway contract.

The company’s other major infrastructure projects include the Metro Manila Skyway Stage 3, Cavite-Laguna Expressway, LRT2 East Extension and NLEX-SLEX Connector Road.

DMIC also bagged a P958-million contract to build a warehouse complex in Batangas in January. —Ted Cordero/KBK, GMA News