DMCI Holdings sees record profit at Php12-B in 2015

By Leslie D. Venzon

MANILA, Nov. 16 (PNA) — Diversified engineering conglomerate DMCI Holdings, Inc. expects a record profit of Php12 billion this year, 25 percent higher from previous year’s Php10 billion, on the back mainly of its water distribution and nickel mining businesses.

DMC Chairman and President Isidro A. Consunji expressed optimism for a record profit after its consolidated net income surged 31 percent to Php9.9 billion from Php7.5 billion during the same period last year.

Excluding one-time gain on the sale of its stake in Private Infra Dev Corp. (PIDC) to Rapid Thoroughfares Inc. of San Miguel Corporation, the core net income of the Consunji-led holding firm grew 24 percent to Php9.3 billion from Php7.5 billion.

PIDC is the concessionaire for the Tarlac-Pangasinan La Union Expressway.

Higher income contributions from its coal energy, real estate, off-grid power, construction and water distribution businesses boosted the company’s profit performance.

“Despite challenging market and operating conditions, our investments delivered robust growth during the first nine months of the year. We are focused on sustaining this momentum to achieve our full year profit target of Php12 billion,” said Consunji.

Semirara Mining and Power Corporation (SMPC) contributed Php3.5 billion to DMC’s bottom line, up 59 percent from the Php2.2 billion last year. This was due to the improved output and sales of its power generation segment.

Gross power generation of SMPC’s Calaca power units surged 81 percent to 3,163 gigawatt-hour (GWh) from 1,748 GWh while cost of power sales declined by half to Php3.5 billion.

DMCI Homes shared Php2.7 billion, slightly higher from the previous year, owing to higher recognized revenues from completed high-rise projects in the first quarter. Excluding the effect of a gain on sale of undeveloped lot last year, net income actually rose by 12 percent.

Higher billed volume and improved operational efficiency pushed profit contribution from affiliate Maynilad Water Services to grow 25 percent to Php1.7 billion.

Income contributions from DMCI Mining, however, declined by 26 percent to Php643 million due to lower nickel prices, higher asset depreciation and depletion, and higher effective tax this year.

Core business D.M. Consunji, Inc. shared Php361 million, driven by improved margins from approved variation orders of completed works.

Profit contribution from DMCI Power surged 62 percent to Php305 million from Php188 million last year.

Higher electricity sales in Oriental Mindoro, Masbate and Palawan accounted for the significant growth.

Moreover, Consunji hopes that the company will deliver another record profit next year, banking on the recovery of the construction and the higher contribution of mining and power generation businesses.

“We will probably be able open a certain area of the mine with the higher quality coal. So that even if the price per ton went down and you are selling better quality, you can maintain your margin,” he said. (PNA)