DMCI first-quarter net income down 26%

D.M. Consunji Inc. (DMCI) opened the year with a 26% decline in its bottom line, as the company reported a decline in its construction accomplishment and fewer projects in its pipeline.

DMCI said its net income fell to P263 million from P355 million, as its order book declined by 9% to P42.4 billion from P46.7 billion, as it completed several projects and the descoping of the North-South Commuter Railway (NSCR).

“We’re expecting equitable compensation for the descoping, which is a standard contract condition in construction projects,” DMCI president and CEO Jorge Consunji said in a regulatory filing.

“Negotiations are underway, and a resolution should be reached in the next few months,” he added.

Quarter-on-quarter, its order book posted a 20% increase from P35.2 billion in the fourth quarter of 2022 on the back of the awarding of the second contract package of the South Commuter Railway Project.

The project cost is pegged at over P28 billion, involving the construction of railway tracks and stations along España, Sta. Mesa, and Paco, which will take four and a half years to complete with its joint venture partner Acciona Construction Philippines.

“In addition to construction revenues, we also expect to generate collateral business for our ready-mix concrete, equipment rental, and steel fabrication units,” Consunji said.

Other projects in the firm’s order book include the Dinapigue Causeway expansion, the Xavier Junior High School Building, the early works at YCO Manila, and the dredging and hauling of the lagoon in the La Mesa Water Treatment Plant.—AOL, GMA Integrated News