DMCI Holdings, Inc. stated that it plans to return to pre-pandemic levels beginning in 2023, when the company anticipates the stabilization of its units in the midst of the global health emergency.
“Given that the (coronavirus disease) vaccine rollout is only getting started, it will most likely be completed by the first quarter of next year. As a result, the consequences of this pandemic will most likely be felt before the end of 2022. So, pre-pandemic economic conditions will most likely begin in 2023,” DMCI President and CEO Isidro A. Consunji said at the company’s annual stockholders conference, which was practically held on Tuesday.
When questioned when DMCI is supposed to rebound to pre-pandemic earnings, he made the remark.
During the case, he provided an update on the holding company’s building, real estate, and power divisions.
Mr. Consunji, who is also the chairman of DMCI, stated that he anticipates a good rebound from the firm’s construction arm D.M. Consunji, Inc. this year due to its substantial order book, increased barracks capacity, and additional staff.
“Productivity is also higher this year since, unlike last year, critical and priority development programs are permitted to proceed also during ECQ (enhanced population quarantine),” he said.
He predicted that the firm’s real estate division, DMCI Homes, will perform better this year thanks to significant unrecognized sales, improved building efficiency, and attempts to optimize capital. He did, however, warn that “softening demand for mid-segment projects due to work instability and unemployment may have a detrimental effect on its profitability by 2023.”
However, he believes that resort-style projects would keep buyers interested.
Mr. Consunji said that the company expects its coal producer Semirara Mining and Power Corp. (SMPC) earnings to increase due to improved market conditions. However, water seepages at the Molave North Block 7 in Antique and a sustained breakdown at a unit of the company’s Calaca power plant would “temper” the company’s financial performance.
He expects operational headwinds to continue for SMPC.
He also stated that DMCI Mining Corp.’s inventory could be increased by 276 million wet metric tons if all pending mineral output share agreements are authorised.
Mr. Consunji also provided reports on DMCI Power Corp., which is still expanding. He mentioned that the unit has begun construction of a 15-megawatt (MW) thermal plant in Palawan, which is expected to stabilize the area’s power supply.
DMCI Power is also constructing a 4-MW hybrid solar-diesel plant in Masbate, which is expected to be operational by next year.
Mr. Consunji stated that DMCI plans to engage in the government’s Build, Build, Build (BBB) program as a joint venture partner or subcontractor because the ventures “would not enable DMCI to participate as a single agency.”
The first-quarter attributable net income of DMCI increased nearly sevenfold to P4.25 billion, up from P616.45 million in the same timeframe last year.
On the local bourse, DMCI shares rose 0.37 percent or 2 centavos to end at P5.46 apiece on Tuesday. Angelica Y. Yang is a freelance writer based in Los Angeles, California.