DMCI Holdings earnings rose 5% to P4.3B in Q1

ENGINEERING conglomerate DMCI Holdings Inc. said its net income grew a slim 5 percent during the first quarter of the year to P4.3 billion from P4.1 billion last year.

The company said higher coal prices, water billed volume and construction revenues accounted for the increase.

Consolidated revenues during the same period grew 8 percent to P20.3 billion from P18.8 billion last year.

“Our power-generation business suffered some setbacks this quarter because of the unplanned outages of Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp.,” DMCI Holdings Chairman and President Isidro A. Consunji said.

“But we believe that higher coal sales and average selling prices will more than offset the impact of these outages on our bottom line,” he added.

Semirara Mining and Power Corp. recorded a 3- percent increase in net income for the first three months of the year from P4.4 billion to P4.6 billion, owing to a 24-percent hike in the average selling price of coal.

Net income share from DMCI Homes fell 11 percent to P848 million, from P950 million during the same period last year due to a slowdown in revenue recognition.

Following the percentage of completion accounting method, DMCI Homes recognizes revenues based on the progress of its project development and once at least 15 percent of the contract price has been collected from the buyer.

Meanwhile, net-income contribution from water concessionaire Maynilad Water Services Inc. jumped 12 percent to P315 million from P282 million, primarily driven by higher billed volume of 4.9 percent coupled with a 2.8-percent inflationary rate adjustment on its basic charge beginning January 1 this year.

Construction firm DM Consunji Inc. posted an 85-percent surge in net income share due to the realization of variation orders from projects nearing completion.

Contribution to the parent rose to P336 million, from P182 million the previous year.  Earnings contribution from off-grid energy business DMCI Power fell 12 percent, from P87 million to P76 million attributable mainly to the lower-than-expected provisional tariff granted to its Aborlan power plant in Palawan.

The company has a pending motion for recomputation with the Energy Regulatory Commission that is expected to be resolved soon.

Shipment of higher-grade nickel from old stockpile and lower depreciation costs allowed DMCI Mining to deliver strong growth in the first three months of the year. Its net-income contribution grew by 41 percent year-on-year, from P32 million to P45 million.

Other income during the first quarter more than tripled to P37 million, from P11 million due to higher interest income.

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