DMCI Holdings nets P14.8B

March 10, 2018 - 4:12 PM
Isidro Consunji, DMCI Holdings Chairman and President: “If we hit (again) 16 percent this year, we will be very happy." HANDOUT PHOTO

MANILA – DMCI Holdings, Inc., a diversified engineering conglomerate, expects modest growth this year after recording a 16-percent increase in profit in 2017 on the back of coal energy, real estate, construction and nickel mining businesses.

“If we hit (again) 16 percent this year, we will be very happy. (We grow) 16 percent year-on-year,” DMCI Holdings Chairman and President Isidro Consunji said in an interview.

Consunji is optimistic the real estate business “should be good” this year, as sales remained high despite higher prices spurred by rising construction materials and oil prices, a weaker peso and higher interest rates.

“I think our real estate (business) will increase because of demographic, economic cycle of the country,” he said.

Consunji also sees strong growth from DMCI’s coal production business segment this year.

“For 2018, our financial performance will likely be more modest because of tapering electricity rates and the unresolved issues in our nickel mining and water businesses,” he added.

DMCI Holdings reported to the local bourse that its net income attributable to shareholders rose to PHP14.8 billion in 2017 from PHP12.7 billion the previous year, following the restatement of earnings from DMCI Homes.

The prior year results of the wholly-owned subsidiary were restated to reflect its shift in accounting policy from completed contract method to percentage of completion (POC) method – a shift meant to align with current accounting practice in the real estate industry.

Net income contributions from Semirara Mining and Power Corporation jumped 15 percent from PHP6.9 billion to PHP8 billion due to higher average coal prices and gross electric output.

All-time high real estate sales led to a 47-percent surge in net earnings for DMCI Homes from restated earnings of PHP2.4 billion in 2016 to PHP3.6 billion last year.

Net income contributions from core business D.M. Consunji, Inc. rose 11 percent from PHP938 million to over PHP1 billion on lower operating costs and favorable settlement of pending claims.

Nickel firm DMCI Mining Corporation recorded PHP113 million in net earnings last year, a reversal from a net loss of PHP65 million in 2016, after a significant drop in operating costs and shipping 525,000 wet metric tons of nickel ore from its old inventory.

Off-grid energy business DMCI Power Corporation ended the year with a 15-percent decline in profit from PHP424 million to PHP359 million due primarily to the expiration of its income tax holiday for its Masbate operations.

Affiliate Maynilad’s net earnings share contracted 12 percent from PHP1.9 billion to PHP1.6 billion due mainly to the delayed implementation of its tariff adjustment.