Real estate, water, mining hit DMCI Holdings’ 2016 earnings

By Krista Angela M. Montealegre
Posted on March 18, 2017
http://www.bworldonline.com/content.php?section=Corporate&title=Real-estate,-water,-mining-hit-DMCI-Holdings%E2%80%99-2016-earnings&id=142371

The holding firm of the Consunji family told the stock exchange on Friday that it reported a core net income of P12.1 billion last year, down 1.63% from P12.3 billion last year.

Consolidated net profit fell 5% to P12.2 billion from P12.8 billion after taking into account the one-time gain of P530 million for the sale of its 25.11% share in Private Infra Dev Corp. (PIDC) in 2015 and a non-recurring item of P111 million on the partial sale of Subic Water in 2016.

“The double-digit growth of our energy and construction businesses were offset by the sharp drop in profitability of DMCI Homes, DMCI Mining Corp., and Maynilad Water Services, Inc.,” DMCI Holdings Chairman and President Isidro A. Consunji was quoted as saying in the statement.

DMCI Project Developers, Inc., which operates under the brand DMCI Homes, saw its profit contribution drop 46% to P1.9 billion, dragged by the deferred recognition of revenues from its completed high-rise projects.

The mid-range property developer books sales only when the unit has been fully completed and at least 15% of the contract price collected.

Sales and reservation, on the other hand, hit a historic high of 8,236 units, climbing 55% from 5,325 units in the prior year.

Likewise, net profit share from affiliate Maynilad slid 19% to P1.9 billion, following the expiration of its income tax holiday in December 2015.

The prolonged suspension of DMCI Mining’s nickel mining operations in Palawan and Zambales, coupled with sluggish nickel prices and demand, resulted in a net loss of P65 million, a reversal of the P501-million net profit booked in 2015.

DMCI Holdings drew on the strength of integrated energy company Semirara Mining and Power Corp., whose earnings contribution rose 43% to P6.9 billion from P4.8 billion due to higher coal and power sales.

Construction firm D.M. Consunji, Inc. staged a strong rebound last year, growing its net profit by half to P938 million.

Off-grid supplier DMCI Power Corp. chalked up an 11% jump in its bottomline to P424 million from P382 million on the back of higher electricity sales in Masbate and Palawan, coupled with the full-year operations of a bunker-fired plant in Oriental Mindoro.

Shares in DMCI Holdings lost 18 centavos or 1.50% to end at P11.86 each on Friday.