DMCI Holdings net income dip 28 percent
Consunji-owned DMCI Holdings reported a 28 percent drop in net income to ₱20 billion for the first nine months of 2023 from ₱27.6 billion in the same period last year due to normalizing coal and nickel prices.
In a disclosure to the Philippine Stock Exchange (PSE), the firm’s revenues also declined by 19 percent to ₱92 billion from ₱114 billion because of the combined effects of “normalizing prices (commodities and electricity), reduced coal shipments, lower construction accomplishments, higher revenue reversals from real estate sales cancellations and fewer new real estate accounts that qualified for revenue recognition.”
DMCI Holdings Chairman and President Isidro A. Consunji explained that the company saw double-digit contractions in coal and nickel index prices because of the China economic slowdown and global oversupply. However, our power businesses acted as significant buffers.”
“Contributions from
Sem-calaca [Power Corporation], Southwest Luzon [Power Generation Corporation] and DMCI Power Corporation (DMCI Power) all grew double digits because of improved generation, sales volume and margins,” he added.
Consolidated core net income from January to September was similar to its reported net income “due to a nonrecurring gain of ₱2 million last year for the sale of a DMCI lot and a nonrecurring loss this year of ₱27 million because of Maynilad forex losses and donations,” said the firm.
The drop in net income also reflected a decrease in its earnings per share to ₱1.51 from ₱2.08, resulting in 18.4 percent Return on Equity.
Among its subsidiaries and associates, Semirara Mining and Power Corporation (SMPC), DMCI Project Developers, Inc. (DMCI Homes), and Maynilad Holdings Corporation contributed 92 percent to the core net income.
SMPC contributed ₱12.8 billion, 37 percent lower from its ₱20.4 billion contribution last year due to lower shipments and average selling prices, but offset by higher power generation, sales, and average selling price.
DMCI Homes contributed ₱3.8 billion similar from last year as it recorded better selling prices and higher income from sales and cancellations despite lower percentage of project completion.
Maynilad’s contributions increased by 51 percent to ₱1.7 billion from ₱1.1 billion caused by higher billed volume, better customer mix and improved average effective tariff.