DMCI Holdings, Inc. posted a combined core net income of P4.1 billion in the first quarter, or more than four times the amount a year earlier, thanks to “exceptional” production from its real estate and mining divisions.
“We had a better-than-expected Q1 (first quarter) due to higher building completions and higher coal sales.” With the exception of Maynilad, all of our companies performed admirably,” said DMCI Holdings Chairman and President Isidro A. Consunji in a statement.
The quarter’s core profits for the diversified conglomerate omitted a non-recurring loss of P414 million from revenue cancellations on a DMCI Homes project last year, a non-recurring benefit of P167 million for deferred tax re-measurements on Maynilad Water Services, Inc.’s concession asset, and a P12 million gain on DMCI Homes’ land selling this year.
According to the announcement, DMCI Holdings’ first-quarter earnings increased by approximately seven times to P4.3 billion from P616 million previously.
Mr. Consunji said that the firm’s success in the coming quarters will be primarily determined by the prices of steel, nickel, and electricity.
“We also anticipate several operating challenges for SMPC (Semirara Mining and Power Corp.) as a result of the irregular water seepages at Molave North Block 7 and the forced plant outages,” he said.
DMCI Homes, the conglomerate’s property brand under DMCI Property Developers, Inc., recorded a core net income of P1.6 billion in the first year, up from a net loss of P197 million the previous year, owing to higher building achievements and the acknowledgment of down payment from new accounts.
Meanwhile, SMPC’s net income contributions more than doubled to P1.3 billion as its coal sector and energy unit Southwest Luzon Power Generation Corp. saw increased demand and higher average sale rates for coal and electricity.
The holding company said that DMCI Homes and SMPC “delivered exemplary performances throughout the time.”
DMCI Mining Corp. earned P415 million in income contributions, more than 16 times the P26 million earned the previous year, thanks to increased volume, shipping, nickel grade, and average sale price.
D.M. Consunji, Inc. contributed twice as many, totaling P342 million, owing to higher building milestones and lower pandemic-related expenses.
Travel restrictions, on the other hand, weakened Maynilad’s billed volume average effective tariff, resulting in a 24% drop in core net income contributions to P287 million.
DMCI Power Corp. contributed P118 million, a significant increase from its previous P97 million losses, owing to higher energy sales and reduced fuel costs from the activity of its 15-megawatt Masbate thermal project.
Meanwhile, revenue from the parent company and other outlets recovered to P13 million, mitigating a net loss of P68 million caused by the absence of costs associated with the global health emergency.