Diversified engineering conglomerate DMCI Holdings reported a 29 percent decline in net income to P11.1 billion in the first half of 2024 from P15.6 billion in the same period last year.

In a disclosure to the Philippine Stock Exchange (PSE), the firm said the lower earnings is primarily due to reduced contributions from its coal mining, on-grid power, real estate and construction subsidiaries, as well as a net loss in the nickel mining business.

It noted that “stronger contributions from the water and off-grid segments partially mitigated these impacts.”

For the second quarter alone, DMCI posted a net income of P5.5 billion, 32 percent lower than the P8.1 billion earned in the comparative period last year.

The drop was largely due to weaker performances from its integrated energy, real estate and nickel mining subsidiaries. Improved results from its water, off-grid power and construction businesses partially offset the downturn.

Excluding non-recurring items, core net income also dropped by 32 percent to P5.5 billion from P8.1 billion in the second quarter of 2024.

“We are now in the new normal. Market prices and global supply chains have normalized, so our challenge is to strategically manage costs, optimize operational efficiency and capitalize on synergies across our business units,” said DMCI Holdings Chairman and President Isidro A. Consunji.

Quarter-over-quarter, consolidated earnings remained stable, dipping by two percent from P5.6 billion. Compared to the pre-pandemic level of P3.7 billion (second quarter of 2019), the group's bottom line was 49 percent higher.

In the second quarter, the net income contribution from Semirara Mining and Power Corporation declined by 41 percent to P3.4 billion from P5.8 billion last year, as the energy markets normalized. 

Higher coal and electricity sales volumes cushioned the impact of softer selling prices. 

DMCI Homes contributed P737 million, down 43 percent from P1.3 billion, due to lower real estate revenues and higher operating expenses, which were partly offset by increased contributions from joint venture construction revenues, rentals and forfeitures.

Associate Maynilad Water Services posted a 54 percent surge in net income contribution, rising from P474 million to P732 million, driven by increased billed volume, higher average effective tariff and slower growth in cash, non-cash and finance costs.

DMCI Power made an all-time high contribution of P355 million, a 54 percent increase from P231 million in the second quarter last year, due to double-digit increases in power dispatch and lower direct costs from more affordable fuel use. 

Construction firm D.M. Consunji, Inc. saw its net income contribution soar by 73 percent, from P139 million to P240 million, primarily due to lower cash and non-cash costs, reduced tax provisions and higher finance income.

Net of eliminating entries, DMCI Mining swung to a P43 million net loss from P250 million in income last year, as a result of weak market prices, reduced shipments and costs incurred at its Palawan mine.