Engineering conglomerate DMCI Holdings Inc., the holding firm of the Consunji group, said its income in the first half fell 69 percent to P2 billion, from last year’s P6.5 billion, as most of its subsidiaries registered a decline in profits.
For the second quarter alone, the company said its income fell 62 percent to P1.4 billion, from last year’s P3.7 billion.
“Most of our businesses showed resilience during the lockdown period since they belong to essential industries like power, mining and water distribution,” DMCI Holdings Chairman and President Isidro A. Consunji said.
“Semirara [Mining], DMCI Power, DMCI Mining and Maynilad remained profitable in the first and second quarters. Unfortunately, we were severely affected by low market prices.”
Excluding non-recurring items, core net income in the second quarter slipped 59 percent to P1.6 billion from P3.9 billion, bringing core net income from the January-to-June period to P2.6 billion, a 61-percent drop from last year’s P6.7 billion.
It said the first half core net income contributions from Semirara Mining and Power Corp. dropped 64 percent to P1.3 billion, from P3.5 billion last year as coal sales and average selling price dropped 27 percent and 21 percent, respectively. Its power segment also sustained sharp declines with electricity sales and average selling price falling 10 percent and 32 percent, respectively.
Property developer DMCI Homes contributed core earnings of P38 million to the parent company, a 97-percent plunge from P1.2 billion last year as quarantine restrictions dragged down construction accomplishments and consequently, revenue recognition.
Earnings from D.M. Consunji Inc., the construction firm, fell 79 percent to P92 million, from last year’s P440 million, as the 76-day lockdown and staggered workforce build-up affected productivity and revenue recognition.
Off-grid energy supplier DMCI Power contributed P256 million, a 10-percent jump from P233 million last year. Higher energy sales in Palawan and lower fuel costs accounted for the growth.
Attributable net income from DMCI Mining improved 6 percent to P184 million, from P173 million on the back of a 25-percent increase in nickel ore exports.
Net income contributions from affiliate Maynilad Water Services Inc. fell 24 percent to P847 million, from the previous year’s P1.1 billion mainly due to the sharp drop in commercial and industrial sales volume during the lockdown.
Higher depreciation and amortization for its capital expenditure program also contributed to the decline.
The parent firm and others booked P57 million in losses during the first half compared to P126 million last year due to lower interest income.