DMCI Mining earnings higher despite lower shipments

Published August 18, 2022, 1:08 PM

by James A. Loyola

DMCI Mining Corporation posted an 8 percent upturn in standalone second quarter core net income to P542 million from P502 millionin the same period last year.

The firm said in a statement that core profit improved as higher selling prices and stronger US dollar offset the combined impact of lower shipments and higher fuel costs.

However, including the impact of CREATE law last year, its standalone net income for the period contracted by 28 percent to P542 million in the second quarter of 2022 from P749 million in the comparative period of 2021.

“We are seeing some topline weakness because the depletion of Berong mine but with elevated nickel prices and steady production of our other mining asset, we think we can end the year strong,” said DMCI Mining President Tulsi Das C. Reyes.

DMCI Mining President Tulsi Das C. Reyes

For the second quarter alone, DMCI Mining revenues declined by 20 percent to P1.2 billion from P1.5 billion the same period last year.

Average selling prices of nickel ore surged by 50 percent from US$42 to US$63 owing to global supply disruptions and strong China demand while the US dollar appreciated by ten percent against the local currency.

From April to June, shipments plunged by 51 percent from 746,000 wet metric tons (WMT) to 367,000 WMT after production from sole operating asset Zambales Diversified Metals Corporation contracted by 24 percent from 328,000 WMT to 248,000 WMT.

Consequently, DMCI Mining standalone topline for the first semester was flat at P2.6 billion while core net income rose by 11 percent from P979 million to P1.1 billion.

Meanwhile, net income slipped by 11 percent from P1.2 billion to P1.1 billion with the adjustments made in 2021 relative to the CREATE law.

 
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