Normalizing coal and nickel prices undermined earnings of DMCI Holdings Inc., sending the nine-month net income of the diversified engineering conglomerate down 28 percent to P20 billion from P27.6 billion in the year-earlier period.
Consolidated core net income from January to September was roughly the same due to a non-recurring gain of P2 million last year for the sale of a DMCI lot and a non-recurring loss this year of P27 million because of Maynilad Water Services Inc. foreign exchange losses and donations.
“We saw double-digit contractions in coal and nickel index prices because of the China economic slowdown and global oversupply. However, our power businesses acted as significant buffers,” said DMCI Holdings chairman and president Isidro A. Consunji.
“Contributions from SEM-Calaca [Power Corporation], Southwest Luzon [Power Generation Corporation] and DMCI Power all grew double digits because of improved generation, sales volume and margins,” Consunji added in a statement.
For the third quarter alone, DMCI Holdings recognized a consolidated net income of P4.1 billion, a 44-percent drop due to lower contributions from Semirara Mining and Power Corporation and DMCI Mining.
SMPC net income contribution was 37 percent lower at P12.8 billion as the decline in shipments and average selling prices outweighed gains from higher power generation, sales, and average selling price.
DMCI Homes contributed P3.8 billion, unchanged from last year as lower percentage of completion was cushioned by better selling prices and higher income from sales cancellations.
D.M. Consunji, Inc. saw a 32-percent profit drop to P459 million due to the absence of new projects and completion of most infrastructure projects.
DMCI Power increased its contribution by 15 percent to P632 million on the back of higher electricity sales volume, lower fuel costs, and improved margins.
DMCI Mining saw its net income contribution tumble by 48 percent to P569 million largely from lower selling prices and higher costs.
Contribution from affiliate Maynilad rose by 51 percent to P1.7 billion on higher billed volume, better customer mix and improved average effective tariff.
