DMCI Holdings net income declines 26% in Q1

Consunji-led engineering conglomerate DMCI Holdings Inc. saw its net income decline by 26% in the first quarter due to weak income contributions from its coal and on-grid energy businesses.

In a disclosure to the Philippine Stock Exchange on Thursday, DMCI said it posted a bottom line of P2.9 billion in the January to March period, down 26% from P3.9 billion recorded a year earlier.

Excluding non-recurring losses of P91 million and one-time losses of P239 million during the same quarter last year, DMCI's core net income fell 28% year-on-year to P3 billion from P4.1 billion.

"The P91-million non-recurring item is mainly the company’s share in the accelerated depreciation of Calaca Units 1 and 2 while the one-time losses in the first quarter of 2018 include the company’s share in the accelerated depreciation of Calaca Units 1 and 2 (P167 million) and one-time refinancing costs of Maynilad (P72 million)," the company said.

Consolidated revenues dropped 3% to P19.7 billion primarily due to lower coal prices and reduced power generation.

“All our other businesses did well in the first quarter but their combined results were not enough to mitigate the earnings slowdown of Semirara Mining and Power Corporation (SMPC),” DMCI Holdings chairman and president Isidro Consunji said.

Net income contributions from SMPC plunged 49% from P2.8 billion to P1.4 billion owing to an 18% decline in the average selling price of coal and 21% drop in total power generation.

Income share from D.M. Consunji Inc. rose 7% from P336 million to P359 million due to higher accomplishment of its ongoing infrastructure projects.

DMCI Homes contributed P481 million, a 5% improvement from restated first-quarter earnings of P460 million last year due to lower cost of real estate development during the period.

Earnings share from DMCI Power jumped 32% from P76 million to P100 million on the back of higher energy sales in Masbate, Palawan and Oriental Mindoro.

DMCI Mining posted a 129% increase in net income contribution from P45 million to P103 million as nickel ore shipments surged 118 percent from 156 thousand wet metric tons (WMT) to 338 thousand WMT.

Net income contribution from Maynilad jumped 13 percent from P387 million to P436 million due to the combined effect of higher billed volume, a more favorable customer mix, inflationary adjustment on the basic charge beginning January 1, 2019 and tariff adjustment of 2.7 percent starting October 1, 2018. — MDM, GMA News