DMCI net income falls 62% to P1.4 B in first semester

Published August 11, 2020, 9:04 PM

by James A. Loyola

Diversified engineering conglomerate DMCI Holdings, Inc. posted a 62 percent drop in consolidated net income to P1.4 billion in the second quarter of 2020 from P3.7 billion during the same period last year.

In a disclosure to the Philippine Stock Exchange, DMCI said this raised first half net profit to P2.0 billion, a 69 percent year-on-year decline from P6.5 billion.

“Most of our businesses showed resilience during the lockdown period since they belong to essential industries like power, mining and water distribution,” said DMCI Holdings chairman and president Isidro A. Consunji. 

He noted that, “Semirara, DMCI Power, DMCI Mining and Maynilad remained profitable in the first and second quarters. Unfortunately, we were severely affected by low market prices.”

Excluding non-recurring items, core net income in the second quarter slipped 59 percent to P1.6 billion from P3.9 billion, bringing core net income from January to June to P2.6 billion, a 61 percent year-on-year drop from P6.7 billion. 

First-half core net income contributions from Semirara Mining and Power Corporation dropped 64 percent from P3.5 billion to P1.3 billion as coal sales and average selling price dropped 27 percent and 21 percent, respectively.

Its power segment also sustained sharp declines with electricity sales and average selling price falling 10 percent and 32 percent, respectively. 

DMCI Homes contributed core earnings of P38 million to the parent company, a 97 percent decrease from P1.2 billion as quarantine restrictions dragged down construction accomplishments and consequently, revenue recognition. 

Earnings from D.M. Consunji, Inc. contracted 79 percent from P440 million to P92 million due to the 76-day lockdown and staggered workforce build-up which affected productivity and revenue recognition. 

Off-grid energy supplier DMCI Power contributed P256 million, a 10-percent jump from P233 million last year. Higher energy sales in Palawan and lower fuel costs accounted for the growth. 

Attributable net income from DMCI Mining improved 6 percent from P173 million to P184 million on the back of a 25-percent increase in nickel ore exports.