MANILA – Diversified engineering conglomerate DMCI Holdings Inc. recorded a 34-percent drop in consolidated third-quarter net income from PHP2.8 billion to PHP1.9 billion owing to weak contributions from its integrated energy, construction and water businesses.
Real estate arm DMCI Homes accounted for 55 percent of the consolidated profits as its third-quarter contributions surged 70 percent year-on-year to PHP1 billion.
Over the nine-month period, DMCI Holdings booked PHP3.9 billion in consolidated net income, 58 percent down from PHP9.3 billion last year.
Excluding PHP592 million in losses from sales cancellations for a DMCI Homes project, core net income declined by 52 percent from PHP9.3 billion to PHP4.5 billion.
“Among our businesses, Semirara and DMCI were hit hardest by the Covid-19 (coronavirus disease 2019) pandemic. We saw sharp drops in demand and prices for both coal and electricity because of the economic slowdown,” DMCI Holdings chairman and president Isidro Consunji said in a statement Tuesday.
Consunji attributed the deterioration of construction earnings to lower productivity and extraordinary expenses related to the coronavirus.
Core income contributions from Semirara Mining and Power Corporation plunged by 64 percent from PHP4.7 billion to PHP1.7 billion primarily due to anemic market conditions and the imposition of coal import quotas in China last August.
DMCI Homes contributed PHP1.1 billion core income, 40 percent lower from PHP1.8 billion last year, because of lower revenues due to the imposition of lockdowns which slowed down construction productivity.
From PHP664 million, D.M. Consunji Inc. booked a net loss of PHP97 million because of expenses related to Covid-19, lower construction accomplishments due to the lockdowns, and higher costs due to right-of-way issues for infrastructure projects.
DMCI Power posted an 18-percent growth in earnings contributions from PHP341 million to PHP403 million on the back of higher electricity sales and upward tariff adjustment for its Aborlan power plant.
Strong China nickel demand coupled with a 41-percent jump in production and the prevailing Indonesian nickel ore export ban allowed DMCI Mining to boost its income contributions by 190 percent from PHP87 million to PHP252 million.
Contributions from affiliate Maynilad fell 22 percent from PHP1.6 billion to PHP1.2 billion owing to lower commercial sales and average effective tariff, aggravated by higher amortization and depreciation expenses.
Lower interest income led to a PHP54-million net loss for the parent and other investments compared to a net income of PHP185 million during the same period last year. (PR)
