Diversified engineering conglomerate DMCI Holdings, Inc. reported a first quarter consolidated net income of P5.6 billion, 25 percent lower than the P7.5 billion earned in the same period last year due to lower contributions from most of its businesses.
In a disclosure to the Philippine Stock Exchange, the firm said that quarter-over-quarter, group net earnings rose by 19 percent from P4.7 billion and almost double (up 93 percent) its pre-pandemic net income of P2.9 billion recorded in the first quarter of 2019.
From January to March 2024, consolidated revenue declined 17 percent from P33.0 billion to P27.4 billion due to stabilizing coal, nickel and electricity prices, along with lower construction accomplishments, fewer real estate accounts that qualified for revenue recognition and higher real estate sales cancellations.
“Market prices pose a significant challenge for us this year. We do not expect coal, nickel and electricity prices to recover to the highs of the past two years due to shifts in demand-supply dynamics,” said DMCI Holdings Chairman and President Isidro A. Consunji.
He noted that, “To mitigate these external challenges, we will focus on improving operational efficiency and refining our marketing strategies to enhance the value of our products and services.
Net income contribution from Semirara Mining and Power Corporation (SMPC) dropped by 27 percent from P5.1 billion to P3.7 billion as weaker market prices muted the impact of higher coal shipments and electricity dispatch.
Meanwhile, DMCI Homes contributed P879 million, 12 percent lower than P994 million in the first quarter of 2023 primarily due to revenue recognition slowdown from ongoing and new accounts.
Contribution from affiliate Maynilad increased by 28 percent from P519 million to P664 million owing to higher billed volume, better customer mix and improved average effective tariff.
DMCI Power nearly doubled (97 percent) its contribution from P134 million to P264 million, driven by increased generation capacity and electricity demand, coupled with lower fuel expenses.
Construction unit D.M. Consunji, Inc. contributed P98 million, a 64-percent drop from P273 million due to project delays and fewer ongoing projects.
DMCI Mining experienced a sharp reversal, shifting from a P473 million net income to a P22 million net loss due to decreased shipments, lower nickel grades and weaker selling prices.