Diversified engineering conglomerate DMCI Holdings, Inc. reported a 58 percent drop in consolidated net income to P3.9 billion in the first nine months of 2020 from P9.3 billion in the same period last year.
In a disclosure to the Philippine Stock Exchange, DMCI said core net income declined by a lower 52 percent to P4.5 billion from P9.3 billion. Core profit excludes P592 million in losses from sales cancellations for a DMCI Homes project.
Consolidated revenues during the same period contracted 33 percent from P65.9 billion in 2020 to P43.9 billion in 2019.
For the third quarter alone, DMCI recorded a 34 percent drop in consolidated net income to P1.9 billion from P2.8 billion last year owing to weak contributions from its integrated energy, construction and water businesses.
Excluding non-recurring items, core net income for the third quarter slipped 27 percent from P2.6 billion to P1.9 billion.
Real estate arm DMCI Homes accounted for 55 percent of the consolidated profits as its third-quarter contributions surged 70 percent year-on-year to P1.0 billion.
“Among our businesses, Semirara and DMCI were hit hardest by the COVID-19 pandemic. We saw sharp drops in demand and prices for both coal and electricity because of the economic slowdown,” said DMCI Holdings chairman and president Isidro A. Consunji.
He added that, “Construction earnings deteriorated because of lower productivity and extraordinary expenses related to the coronavirus.”
Core income contributions from Semirara Mining and Power Corporation plunged 64 percent to P1.7 billion in the first nine months of 2020 from P4.7 billion in the same period last year primarily due to anemic market conditions and the imposition of coal import quotas in China last August.
DMCI Homes contributed P1.1 billion core income, 40 percent lower than the P1.8 billion generated in the first nine months last year because of lower revenues due to the imposition of lockdowns which slowed down construction productivity.
From P664 million in the first nine months last year, construction firm D.M. Consunji, Inc. booked a net loss of P97 million in the same period this year because of expenses related to COVID-19, lower construction accomplishments due to the lockdowns and higher costs due to right-of-way issues for infrastructure projects.
DMCI Power posted an 18 percent growth in earnings contributions from P341 million to P403 million on the back of higher electricity sales and upward tariff adjustment for its Aborlan power plant.
Strong China nickel demand coupled with a 41 percent jump in production and the prevailing Indonesian nickel ore export ban allowed DMCI Mining to boost its income contributions by 190 percent from P87 million to P252 million.
Contributions from affiliate Maynilad fell 22 percent from P1.6 billion to P1.2 billion owing to lower commercial sales and average effective tariff, aggravated by higher amortization and depreciation expenses.
Lower interest income led to a P54 million net loss for the parent and other investments compared to a net income of P185 million during the same period last year.