MANILA -- Diversified engineering conglomerate DMCI Holdings, Inc. reported a slight 2-percent decline in earnings in 2018 to PHP14.5 billion from PHP14.8 billion the previous year, pulled down by the weakness of its coal energy business.
“Our real estate, construction, off-grid power, mining and water businesses delivered healthy returns in 2018 but the weaker-than-expected performance of Semirara Mining and Power Corporation (SMPC) tempered our consolidated profits,” DMCI Holdings chairman and president Isidro Consunji said in a statement to the local bourse.
He said SMPC faced a series of unforeseen setbacks like the prolonged shutdown of Unit 1 of Southwest Luzon Power Generation Corporation (SLPGC), inclement weather, and China’s soft ban on coal imports.
In a press briefing Thursday night, DMCI Holdings vice president for finance Brian Lim said SMPC remained the biggest contributor to the conglomerate’s portfolio last year despite its net income shares declined from PHP8 billion to PHP6.8 billion.
DMCI Holdings attributed the decline in its net income contribution to a 12-percent drop in coal sales volume and nearly eight-month shutdown of SLPGC Unit 1.
DMCI Homes registered a 9-percent increase in net earnings from PHP3.6 billion to PHP3.9 billion, owing to a 3-percent rise in revenues and a one-time gain of PHP715 million on sale of land.
Net income contributions from core business D.M. Consunji, Inc. rose 16 percent from PHP1 billion to PHP1.2 billion due to a 12-percent rise in revenue and recognition of variation orders from projects nearing completion.
Off-grid energy business, DMCI Power, also saw its net earnings surge 30 percent from PHP359 million to PHP465 million on the back of higher energy sales volume.
Net income of DMCI Mining grew 4 percent from PHP113 million to PHP117 million due to the 22-percent rise in nickel shipment volume of higher-grade nickel.
Higher billed volume increased net earnings share from affiliate Maynilad from PHP1.6 billion to PHP1.8 billion.
“This year we expect a better year especially with new projects which were not included yet in PHP27 billion in order book (signed in 2018),” Lim said. (PNA)
