Diversified engineering conglomerate DMCI Holdings reported its highest-ever second quarter and first half net income as all its subsidiaries delivered exceptional growth during the reporting periods.
In a disclosure to the Philippine Stock Exchange, the firm said its second quarter consolidated profits surged by 73 percent to P9 billion this year from P5.2 billion in 2021 largely driven by higher coal, electricity and nickel prices, coupled with higher revenue recognition from its real estate business.
Core net income during the same period grew at a faster rate of 113 percent to P9 billion from P4.2 billion, after excluding nonrecurring gains of P37 million this year and P1 billion last year relative to the remeasurement of deferred tax liabilities as a result of CREATE law.
With back-to-back historic quarterly earnings, DMCI Holdings more than doubled (114 percent growth) its first-half bottom line to P20.3 billion from P9.5 billion, outperforming its 2021 full-year net income of P18.4 billion.
Excluding minimal non-recurring gains this year (P36 million) and P1.2 billion last year due to CREATE law, its core net income from January to June soared by 144 percent from P8.3 billion to P20.3 billion.
“We had a very strong first half because of elevated market prices. If the current trend holds till October, we hope to declare another round of special dividends for our shareholders before year-end,” said DMCI Holdings Chairman and President Isidro A. Consunji.
For the second quarter, Semirara Mining and Power Corporation’s contributions accelerated by 161 percent to P6.1 billion from P2.3 billion on the back of all-time high average coal selling prices and higher spot sales volume amid elevated market prices.
DMCI Homes contributed P1.3 billion, 63 percent better than the P804 million recorded last year owing to higher revenue recognition from ongoing projects and upward adjustment in selling prices.
Contributions from D.M. Consunji, Inc. more than quintupled (467 percent) from P91 million to P516 million due to the completion of some projects and conservative revenue take-up the previous year.
DMCI Mining accounted for P510 million, 27 percent better year-on-year from P403 million primarily due to higher average selling prices for nickel ore.
Associate Maynilad saw a 9 percent drop in contributions from P431 million to P393 million owing to flattish billed volume and higher costs.
Contributions from DMCI Power jumped by 35 percent from P152 million to P205 million because of higher electricity sales volume and prices.