DMCI adjusts for fuel concerns
Diversified engineering conglomerate DMCI Holdings, Inc. is reassessing its cost assumptions and project rollout as rising fuel prices and supply constraints cloud visibility for the year.
The Consunji-led group said its capital spending program remains in place, but operating costs and execution timelines are now under review due to shifting market conditions.
For 2026, DMCI has earmarked P24.6 billion in capital expenditures for its subsidiaries—11 percent higher than last year—primarily to fund residential developments, off-grid power expansion and improvements in cement operations.
“Well, the capex (capital expenditure) is set already. So, we just have to follow it. Of course, the operating costs will now be revisited,” DMCI executive vice president and Chief Financial Officer Herbert Consunji said.
Consunji noted that the challenge goes beyond higher prices, pointing to tightening supply.
“It’s not just a matter of price, it’s a matter of availability. That’s the major factor. You may have money to buy it, but it’s not available,” he said.
Within the group, some project timelines may be adjusted, particularly for new launches, while ongoing developments will proceed as planned.
“Existing projects will have to push through because we’ve sold some already—it’s already committed,” DMCI Homes President Alfredo Austria said, adding that only new project launches may face delays.
At its mining and power unit, Semirara Mining and Power Corp. (SMPC), fuel availability remains a key concern, with executives acknowledging that supply could not be guaranteed in the near term.
“Nobody would want to guarantee the fuel supply,” DMCI Holdings vice chair and SMPC President Cristina Gotianun said. “So, our strategy is whatever is available, we get it.”
“Fuel is the single biggest cost of our operations. So, we’ve always been very cautious and diligent in putting all the programs to be able to conserve the fuel,” Gotianun said.
She likewise said that some fuel suppliers have already backed out.
