By James A. Loyola
Diversified engineering conglomerate DMCI Holdings, Inc. reported a consolidated net income of P14.5 billion for 2018, a slight 2 percent slip from the P14.8 billion earned in the previous year.
“Our real estate, construction, off-grid power, mining and water businesses delivered healthy returns in 2018 but the weaker-than-expected performance of Semirara Mining and Power Corporation (SMPC) tempered our consolidated profits,” said DMCI Holdings Chairman and President Isidro A. Consunji.
He explained that, “SMPC faced a series of unforeseen setbacks like the prolonged shutdown of Unit 1 of Southwest Luzon Power Generation Corporation, inclement weather and China’s soft ban on coal imports.”
Excluding non-recurring income of P38 million in 2018 and one-time loss of P281 million in 2017, core net income of DMCI Holdings receded 4 percent year-on-year from P15 billion to P14.5 billion.
The P38 million non-recurring income is attributable to a P715 million gain on sale of land by DMCI Homes and P679 million share in accelerated depreciation of Sem-Calaca Power Corporation.
Meanwhile, the one-time items in 2017 include a P117 million share in Maynilad’s redundancy and right-sizing costs and P164 million share in the accelerated depreciation of Sem-Calaca Power Corporation among others.
Net income contributions from SMPC fell 14 percent from P8 billion to P6.8 billion due to a 12 percent drop in coal sales volume and nearly 8-month shutdown of Southwest Luzon Power Generation Corporation (Unit 1).
Excluding non-recurring items, SMPC’s core income attributable to DMCI Holdings declined 8 percent from P8.1 billion to P7.4 billion.
DMCI Homes registered a 9 percent increase in net earnings from P3.6 billion to P3.9 billion owing to a 3 percent rise in revenues and a one-time gain of P715 million on sale of land.