Real estate, water drag DMCI Holdings' net income
MANILA, Philippines – Engineering conglomerate DMCI Holdings Incorporated saw its 9-month net income fall by 6% to P9.2 billion, dragged by lower profit contributions from its real estate, nickel mining, and water businesses.
Minus the one-time gain of P111 million from the sale of its 10% stake in Subic Water and Sewerage Company, core net income slipped 2% to P9.1 billion during the same period.
DMCI said in a disclosure to the Philippine Stock Exchange (PSE) that consolidated revenues from January to September were also at P45.1 billion compared to P45.6 billion last year.
"Our earnings results are in line with our forecast. Although our construction and energy businesses did well, the revenue recognition timing issue of DMCI Homes and the income tax holiday expiration of Maynilad significantly weighed down our consolidated results," DMCI chairman and president Isidro Consunji said in a statement.
Consunji said the suspension of DMCI Mining's two operating units also contributed to the group's sluggish earnings.
DMCI said net income contribution from Semirara Mining and Power Corporation, surged 52% to P5.4 billion due to higher coal export sales and the commercial operations of Southwest Luzon Power Generation Corporation.
Its construction unit, D.M. Consunji Incorporated, also more than doubled its net income to P732 million from P361 million last year; while its off-grid energy unit DMCI Power Corporation booked a 12% profit increase to P342 million from P305 million.
Drop in real estate, nickel
However, the group’s property arm DMCI Homes registered a 63% drop in net income to P1 billion due to the deferred recognition of revenues from its completed high-rise projects, which normally take 3 to 4 years to complete.
Mining unit DMCI Mining Corporation also registered a 91% decline in net income to P59 million due to depressed nickel prices and the prolonged suspension of its mining units in Palawan and Zambales.
Net income contributions from affiliate Maynilad Water Services dropped 11% from P1.7 billion to P1.5 billion.
DMCI Holdings and other investments income also declined by 6% to P58 million in the first 9 months of the year, from P62 million due to reduced interest in Subic Water.
From 40%, subsidiary DMCI Project Developers Incorporated was left with a 30% interest after divesting its 10% stake in March this year. – Rappler.com