CONSUNJI-LED conglomerate DMCI Holdings, Inc. recorded a 32% decline in its second-quarter net income to P5.5 billion from P8.1 billion last year due to weaker performances of its energy, real estate, and mining subsidiaries.
“The drop was largely due to weaker performances from its integrated energy, real estate, and nickel mining subsidiaries. Improved results from its water, off-grid power, and construction businesses partially offset the downturn,” DMCI Holdings said in a statement to the stock exchange on Tuesday.
Second-quarter total revenue fell by 24% to P28.09 billion from P36.96 billion in 2023 due to “softer commodity and electricity prices, reduced construction accomplishments, increased reversals from real estate sales cancellations, and fewer ongoing and new real estate accounts qualifying for recognition.”
“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,” DMCI Holdings Chairman and President Isidro A. Consunji said.
Among business units, the net income contribution of coal producer Semirara Mining and Power Corp. fell by 41% to P3.4 billion in the second quarter from P5.8 billion last year as the energy markets normalized. Higher coal and electricity sales volumes cushioned the impact of softer selling prices.
DMCI Homes took up P737 million in net income, down by 43% from P1.3 billion, due to lower real estate revenues and higher operating expenses, which were partly offset by higher contributions from joint venture construction revenues, rentals, and forfeitures.
The conglomerate’s water associate, Maynilad Water Services, Inc., saw a 54% increase in net income contribution to P732 million due to higher billed volume, higher average effective tariff, and slower growth in cash, noncash, and finance costs.
DMCI Power accounted for an all-time high of P355 million in net income, up by 54%, led by double-digit increases in power dispatch and lower direct costs.
D.M. Consunji, Inc. increased its net income contribution by 73% to P240 million on the back of lower cash and noncash costs, reduced tax provisions, and higher finance income.
DMCI Mining generated a P43-million net loss compared with a P250-million net income last year due to weak market prices, reduced shipments, and costs incurred at its Palawan mine.
For the first half, DMCI Holdings recorded a 29% drop in net income to P11.1 billion from P15.6 billion in 2023 due to lower contributions from the coal mining, on-grid power, real estate, and construction subsidiaries, as well as a net loss in the nickel mining business.
Consolidated revenue fell by 21% to P55.52 billion from P69.99 billion last year due to “anemic coal, nickel, and power prices, lower construction accomplishments, and reduced recognitions from real estate accounts.”
“Stronger contributions from the water and off-grid segments partially mitigated the decreased income of other units,” it said.
On Tuesday, DMCI Holdings shares rose by 1.64% or 18 centavos to P11.16 apiece. — Revin Mikhael D. Ochave
