DMCI Holdings 9-month net income slips 58%

Consunji-led diversified engineering conglomerate DMCI Holdings Inc. saw  a double-digit decline in its net earnings in the first nine months of 2020 as its businesses got hit by the economic fallout resulting from the COVID-19 crisis.

In a disclosure to the Philippine Stock Exchange, DMCI Holdings reported a net income of P3.9 billion during January to September period, down 58% from P9.3 billion recorded a year earlier.

Consolidated revenues also slipped by 33% to P43.9 billion from P65.9 billion year-on-year.

“Among our businesses, Semirara and DMCI were hit hardest by the COVID-19 pandemic. We saw sharp drops in demand and prices for both coal and electricity because of the economic slowdown,” said DMCI Holdings chairman and president Isidro Consunji. 

“Construction earnings deteriorated because of lower productivity and extraordinary expenses related to the coronavirus,” Consunji added.

Contributions from Semirara Mining and Power Corporation plunged 64% from P4.7 billion to P1.7 billion primarily due to anemic market conditions and the imposition of coal import quotas in China last August.

DMCI Homes contributed P1.1 billion, 40% lower from P1.8 billion last year because of lower revenues due to the imposition of lockdowns which slowed down construction productivity.

From P664 million, D.M. Consunji Inc. booked a net loss of P97 million because of expenses related to COVID-19, lower construction accomplishments due to the lockdowns and higher costs due to right-of-way issues for infrastructure projects.

DMCI Power posted an 18% growth in earnings contributions from P341 million to P403 million on the back of higher electricity sales and upward tariff adjustment for its Aborlan power plant.

Strong China nickel demand coupled with a 41% jump in production and the prevailing Indonesian nickel ore export ban allowed DMCI Mining to boost its income contributions by 190% from P87 million to P252 million.

Contributions from affiliate Maynilad fell 22% from P1.6 billion to P1.2 billion owing to lower commercial sales and average effective tariff, aggravated by higher amortization and depreciation expenses. -MDM, GMA News