ENGINEERING conglomerate DMCI Holdings Inc. said its net income slipped in the first three quarters of the year due to the continued shutdown of its coal-fired power plant for the entire third quarter.
The company said its income was down 2 percent from January to June to P11.5 billion, from P11.7 billion last year due to weak contributions from its coal energy business.
For the third quarter alone, DMCI saw a 44-percent decline in net income to P2.3 billion, from P4.1 billion in the same period last year.
Excluding a P715-million one-time gain on sale of an undeveloped lot by DMCI Homes and P66-million refinancing and other one-time costs of Maynilad, core net income from January to September contracted 8 percent to P10.8 billion, from P11.8 billion year-on-year.
“Aside from Semirara, our construction, real estate and nickel mining businesses also slowed down in the third quarter. But we still expect single-digit growth in our full-year results,” company Chairman and President Isidro A. Consunji said.
Net income contributions from Semirara Mining and Power Corp. dropped 22 percent to P5.1 billion, from P6.5 billion last year due to the prolonged shutdown of Southwest Luzon Power Generation Corp. (Unit 1), reduced coal production in Semirara Island because of continuous rains in July and August and higher strip ratio.
DMCI Homes contributed P3.4 billion for the period, a 29-percent improvement from P2.65 billion last year, mainly due to the one-time gain on sale of an undeveloped lot to the SBS group of the Sytengco family. There was also a 2-percent growth in revenue and 7-percent rise in reservation sales.
Net income contributions from affiliate Maynilad Water Services Inc. grew 11 percent to P1.5 billion, from P1.3 billion primarily due to a 2.8-percent increase in billed volume, 2.8-percent inflationary tariff adjustment and improved customer mix.
Construction arm DM Consunji Inc. delivered a 12-percent growth in net income share—to P952 million, from P851 million on the back of higher accomplishment in building projects and the realization of variation orders from projects nearing completion.
Off-grid energy business DMCI Power Corp. contributed P337 million, a 4-percent upturn from P324 million last year. The lower-than-expected provisional tariff for its Aborlan bunker plant in Palawan muted the effect of the 25-percent increase in electricity sales volume on the bottom line.
DMCI Mining Corp., meanwhile, recorded a 14-percent increase in net income contributions from P117 million to P133 million in the first nine months of the year, following the shipment of 482,762 wet metric tons of higher grade nickel ore from its old stockpile.
Other income during the first nine months more than doubled to P171 million, from P50 million due to higher interest income.