MANILA -- Diversified engineering conglomerate DMCI Holdings, Inc. grew its profit by 19 percent in the first nine months this year to PHP11.7 billion, driven by its coal energy, real estate, construction and nickel mining businesses.
Its net income for July to September quarter also surged by 18 percent to PHP4.1 billion from PHP3.4 billion.
Profit contributions from Semirara Mining and Power Corp. for the first nine months rose 21 percent from PHP5.4 billion to PHP6.5 billion on higher coal prices and energy sales.
Higher sales and reservations ramped up DMCI Homes’ net income by 59 percent to PHP2.7 billion, compared to restated earnings of PHP1.7 billion for the January to September 2016 period.
Net income contributions from construction arm D.M. Consunji, Inc. rose 16 percent from PHP732 million to PHP851 million due to higher percentage of completion on ongoing projects and additional revenue from contract modifications.
DMCI Mining Corp. nearly doubled its net earnings from PhP59 million to PhP117 million during the first nine months of the year, after cutting its operating costs by more than half and shipping most of its old inventory.
DMCI Holdings Chairman and President Isidro A. Consunji expects rosier business prospects next year.
“Next year should be better than 2017…Maybe real estate will probably be little more challenging next year than this year. Perhaps just slightly (challenging) because the aggregate demand is still strong, people have money so the demand is still strong,” he said in a press briefing Wednesday.
Consunji cited projected higher interest rates, commodities and foreign exchange that could put pressure on the real estate market.
Meanwhile, off-grid energy business DMCI Power Corp. booked a 5-percent slip in profitability to PHP324 million from PHP342 million, due mainly to the expiration of its income tax holiday for its Masbate operations.
Net earnings share from affiliate Maynilad Water Services dropped 20 percent from PHP1.5 billion to PHP1.2 billion due to the delayed implementation of its tariff adjustment, coupled with a one-time-gain last year from the re-measurement of its deferred tax liability using Optional Standard Deduction in computing income tax.
DMCI Holdings and other investments income dropped 14 percent to PHP50 million from PHP58 million due to the full period effect of the partial sale of its stake in Subic Water. (PNA)