DMCI Holdings nets P4.3-B profit in Q1

DMCI Holdings said its earning reached PHP4.3 billion in January to March quarter (Photo: DMCI Homes/Facebook)

MANILA — Consunji-led diversified engineering conglomerate DMCI Holdings, Inc. booked a 5-percent increase in profit in the first quarter of 2018, as higher coal sales offset the drop in its power generation business.

DMCI Holdings said its earnings reached PHP4.3 billion in January to March quarter from PHP4.1 billion the previous year.

Consolidated revenues during the same period also grew 8 percent from PHP18.8 billion to PHP20.3 billion.

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

“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 said.

Semirara Mining and Power Corporation (SMPC) recorded a 3-percent increase in net income for the first three months of the year from PHP4.4 billion to PHP4.6 billion, owing to a 24-percent increase in the average selling price of coal.

DMCI Holdings said D.M. Consunji, Inc. posted an 85-percent surge in net income share due to the realization of variation orders from projects nearing completion.

Net income contribution from Maynilad jumped 12 percent from PHP282 million to PHP315 million, primarily driven by higher billed volume (4.9 percent), coupled with a 2.8-percent inflationary rate adjustment on its basic charge beginning January 1 this year.

Profit share from DMCI Homes declined 11 percent to PHP848 million from PHP950 million during the same period last year due to a slowdown in revenue recognition.

Earnings contribution from off-grid energy business DMCI Power fell 12 percent from PHP87 million to PHP76 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 re-computation with the Energy Regulatory Commission which 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 quarter of the year. Its net income contribution grew by 41 percent year on year from PHP32 million to PHP45 million.