DMCI Holdings, a diversified engineering conglomerate, said Tuesday second-quarter net income dropped 32 percent to P5.5 billion due largely to weaker performance of its integrated energy, real estate, and nickel mining subsidiaries, despite some improvement posted by its water, off-grid power, and construction units.
Compared to pre-pandemic levels, specifically during the second quarter of 2019, DMCI Holdings’ net income was up 49 percent.
DMCI Holdings experienced a 29 percent decrease in first-half net income of only P11.1 billion. The decline was due to reduced contribution from coal mining, on-grid power, real estate, and construction subsidiaries, along with a net loss in the nickel mining segment. The stronger performance of its water and off-grid power segments helped partially offset these losses.
Semirara Mining and Power Corp., a major subsidiary of DMCI Holdings, saw its net income contribution fall 41 percent to P3.4 billion due to normalized energy markets, though higher coal and electricity sales volume helped mitigate the impact of softer selling prices.
DMCI Homes contributed P737 million, down 43 percent on lower real estate revenue and increased operating expenses. The decline was partially offset by higher revenue from joint venture construction projects, rentals, and forfeitures.
Maynilad Water Services, an affiliate company, reported a 54 percent increase in net income contribution, rising to P732 million on increased billed volumes, higher average effective tariffs, and slower growth in cash and finance costs.
DMCI Power increased its contribution by 54 percent to a record P355 million. The increase was fueled by double-digit growth in power dispatch and lower direct costs due to more affordable fuel.
D.M. Consunji Inc. saw its net income contribution rise by 73 percent to PHP 240 million, driven by reduced cash and noncash costs, lower tax provisions, and higher finance income.
On the other hand, DMCI Mining experienced a net loss of P43 million. This was a reversal from P250 million in income last year because of weak market prices, decreased shipments, and operational costs at its Palawan mine.
“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 Consunji.
