DMCI Holdings Inc., a listed diversified engineering conglomerate, said Wednesday its second quarter net income declined 9 percent year-on-year to P8.2 billion due to lower contributions from the coal, nickel and construction businesses.
If nonrecurring gain of P37 million in 2022 due to gain on sale of land and a nonrecurring loss of P12 million this year on account of Maynilad donations and net foreign exchange losses, consolidated core net income will just be down 8 percent.
The second quarter results pushed DMCI’s net income down 22 percent in the first half to P15.9 billion due to lower contributions from its coal, nickel, real estate and construction businesses.
“Our bottom line was propped up by the strong rebound of our power and water businesses,” said DMCI Holdings chairman and president Isidro A. Consunji. “Although coal and nickel prices dropped double digits and construction volumes are on a downtrend, we were able to deliver our second highest Q2 ever,” he added.
In the second quarter, net income contribution from Semirara Mining and Power Corp. dipped 5 percent to P5.8 billion from a record high P6.1 billion in the same period last year. Earnings were hurt by weaker coal selling prices, but largely offset by higher coal shipments, power generation, electricity sales and average selling prices.
DMCI Homes contributed P1.4 billion, up 8 percent on the back of higher finance and other income.
Maynilad Water Services Inc., an affiliate of DMCI, delivered a 21-percent improvement in contribution to P474 million due to the combined effect of improved billed volume, customer mix and average effective tariff.
Contribution from DMCI Mining fell by 51 percent to P250 million mainly due to lower selling prices and foreign exchange gains, coupled with higher costs.
DMCI Power contributed P231 million, up 13 percent because of higher electricity sales and lower fuel costs.
The contribution from construction firm D.M. Consunji Inc. plunged 73 percent to P139 million because of slower construction accomplishments, fewer projects and delays in major projects.
