DMCI income more than triples to P5.2B; coal sales lead

0
158

CONSUNJI-LED DMCI Holdings, Inc. said its net income attributable to equity holders reached P5.23 billion in the second quarter, up by more than three times the P1.42 billion posted a year earlier amid higher earnings from its business segments.

In a regulatory filing on Tuesday, the listed conglomerate said revenues from April to June hit P29.76 billion, more than twice the P11.75 billion registered in the same period last year.

Profits were led by the firm’s coal mining segment, which comprised a significant portion or 35% of its second-quarter earnings. Earnings from coal mining climbed to P10.57 billion, over three times the figure previously recorded in 2020.

DMCI said its reported net income in the second quarter grew more than threefold to P5.23 billion from P1.42 billion, which was mainly driven by “all-time high” coal and nickel sales, higher accomplishments from real estate and deferred tax remeasurement under the Corporate Income Tax and Incentives Reform Act.

In the first half of 2021, the holdings firm registered a consolidated net income of P9.5 billion, nearly five times the P2 billion it reported in 2020, due to a rebound of its subsidiaries Semirara Mining and Power Corp. (SMPC), DMCI Homes and DMCI Mining Corp., according to a separate statement.

“Coal and nickel prices were rallying while our production was ramping up so our Q2 (second quarter) was even better than our Q1 (first quarter). Revenue recognition in our real estate business also improved on higher productivity,” DMCI Chairman and President Isidro A. Consunji said.

“We are within striking distance of returning to our pre-pandemic annual net income of P10.5 billion. Barring any major unforeseen events and if commodity prices hold up, we may be able to finish the year even stronger,” he added.

DMCI said that its second-half performance will mainly depend on the movement of coal, nickel and electricity spot prices and sustained upswing of its mining, construction and power plant operations.

“Coal prices could trend upward on global supply disruptions amid strong China demand while nickel prices may strengthen further on robust stainless-steel production versus tightening supply because of coronavirus disease 2019 (COVID-19) lockdowns, bad weather and Indonesian ore export ban,” it said.

“Meanwhile, electricity spot prices could consolidate at around 4 pesos as demand eases during the rainy season and supply improves due to the commissioning of a major power plant, increased output of hydropower plants and reduced plant outages,” it added.

DMCI and its units are engaged in the general construction, coal and nickel mining, power generation, real estate development, water concession and manufacturing businesses. Its major subsidiaries are D.M. Consunji, Inc., DMCI Project Developers, Inc., SMPC, DMCI Power Corp., and DMCI Mining.

DMCI shares improved by 4.01% or 22 centavos to finish at P5.70 apiece at the stock market on Tuesday. — Angelica Y. Yang