Diversified engineering conglomerate DMCI Holdings Inc. said Wednesday net income last year dropped 20 percent to P24.9 billion, weighed down by lower contributions from its integrated energy, nickel and construction subsidiaries.
Higher net income contributions from the real estate, off-grid energy, and water utility businesses, however, helped results last year to stay the second highest in DMCI Holdings’ history, behind the P31.1 billion record set in 2022.
DMCI Holdings said consolidated revenue fell 14 percent to P122.8 billion because of normalizing coal, nickel and electricity prices, alongside a slowdown in construction and real estate activities, and an increase in revenue reversals stemming from the cancellation of real estate sales.
“We saw sharp corrections in commodity and energy prices in 2023 but because our businesses did very well in terms of production and sales volume, we managed to prevent a severe decline in our profitability,” said DMCI Holdings chairman and president Isidro Consunji.
Average Newcastle and Indonesian Coal Index 4 prices dropped by 64 percent and 26 percent, respectively, while Philippine Freight on Board nickel price fell by 30 percent. Average effective spot settlement price for all grids across the Philippines likewise declined double digits at 18 percent.
Contribution from Semirara Mining and Power Corp. slipped 30 percent to P15.8 billion on the combined effect of all-time high coal shipments and electricity sales amid stabilizing prices.
DMCI Holdings said DMCI Homes increased its contribution to earning by 2 percent to P4.6 billion because of better selling prices and higher income from rental and forfeiture fees while affiliate Maynilad contributed P2.1 billion, a 42 percent increase on account of higher water production, billed volume and adjusted tariff.
It said the earnings contribution of DMCI Power rose 29 percent to P959 million on increased gross generation and electricity dispatch while D.M. Consunji Inc. showed a 2 percent decline in net income to P573 million due to lower project accomplishments on fewer ongoing projects.
For the fourth quarter alone, DMCI Holdings recorded a consolidated net income of P4.7 billion, 36 higher year-on-year due to higher revenues and better profit margins. Consolidated core earnings rose by 30 percent to P4.6 billion.Consolidated revenues increased by 8 percent from P28.3 billion to P30.4 billion on higher coal exports.
