DMCI Holdings, Inc. reported on Tuesday a consolidated core net income of P4.1 billion in the first quarter, or more than four times the level a year ago, with the “exceptional” performance of its real estate and mining units.
“We had a better-than-expected Q1 (first quarter) because of higher construction accomplishments and better coal sales. With the exception of Maynilad, all of our businesses also did very well,” DMCI Holdings Chairman and President Isidro A. Consunji said in a statement.
Fo the diversified conglomerate, the quarter’s core income excluded a non-recurring loss of P414 million incurred from sales cancelations on a DMCI Homes project last year, a non-recurring gain 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 sale this year.
In the statement, DMCI Holdings said that its first-quarter earnings rose by nearly seven times to P4.3 billion from P616 million previously.
Mr. Consunji said the firm’s performance in the next quarters would mainly depend on the prices of coal, nickel, and electricity.
“We also expect some operational headwinds for SMPC (Semirara Mining and Power Corp.) given the abnormal water seepages at Molave North Block 7 and the forced plant outages,” he added.
DMCI Homes, the conglomerate’s property brand under DMCI Property Developers, Inc., recorded a core net income of P1.6 billion in the first quarter, swinging from a net loss of P197 million year on year, on the back of higher construction accomplishments and recognition of down payment from new accounts.
Meanwhile, net income contributions from SMPC doubled to P1.3 billion as its coal business along with energy unit Southwest Luzon Power Generation Corp. recorded higher demand and better average selling prices for coal and electricity.
The holding firm described DMCI Homes and SMPC to have “delivered exceptional performances during the period.”
DMCI Mining Corp. recorded income contributions of P415 million, around 16 times higher than the P26 million value year on year as it benefited from higher production, shipment, nickel grade and the average selling price.
Contributions from D.M. Consunji, Inc. were twice higher, ending at P342 million, due to higher construction accomplishments and minimal expenses related to the pandemic.
However, travel restrictions weakened billed volume average effective tariff for water concessionaire Maynilad, which recorded a 24% decline in core net income contributions to P287 million.
DMCI Power Corp. contributed P118 million, an upswing from its previous P97-million losses on the back of higher electricity sales and lower fuel costs due to the operations of its 15-megawatt Masbate thermal plant.
Meanwhile, income from the parent firm and other income sources recovered to P13 million, reversing a net loss of P68 million, due to the absence of expenses related to the global health emergency.
DMCI shares at the local bourse inched up 0.37% or 2 centavos to finish at P5.42 apiece on Tuesday. — Angelica Y. Yang