DMCI earnings down on weak condo sales, coal price
Weaker contributions from the energy, real estate and nickel businesses pulled down the nine-month earnings of engineering and construction conglomerate DMCI Holdings Inc. by 23 percent to P15.1 billion.
In a stock exchange filing on Friday, the Consunji-led firm said total revenues likewise declined by 16 percent to P77.37 billion on weaker commodity and power prices.
“Each of our businesses has been affected differently by the new normal in an increasingly complex environment,” DMCI Holdings chair and president Isidro Consunji said in a statement.
“We are working hard to strengthen our group’s ecosystem, enhance operational efficiency to address macroeconomic challenges and weaker commodity prices and effectively protect our margins,” Consunji added.
DMCI Holdings noted its net income during the period was still above the prepandemic level of P9.31 billion, signaling an improving market.
Expenses inched up by 9 percent to P6.9 billion on higher personnel costs, taxes and licenses, sales and marketing expenses, insurance and maintenance costs.
Semirara Mining and Power Corp., Maynilad Water Services Inc. and DMCI Homes contributed 89 percent to the group’s income, down from 91 percent last year.
Despite higher sales volumes, weaker coal selling prices pulled down Semirara’s net income in the third quarter by 8 percent to P3.12 billion.
The absence of a one-time refund in wharfage fees from the Philippine Ports Authority gutted Semirara’s other income by 95 percent to P24 million in the July-to-September period.
On Semirara’s power side, revenues rose by a tenth to P5.82 billion on improved generation and sales.
Total average capacity reached 755 megawatts, up by 23 percent.
Maynilad income up 52%
Maynilad, where DMCI Holdings has a 25.24-percent ownership, saw its net income surge by 52 percent to P922 million, driven by higher billed volume and a tariff adjustment implemented early in the year.
Revenues rose by 22 percent to P8.49 billion.
Meanwhile, earnings at developer DMCI Homes slid by 34 percent to P768 million due to lower real estate revenues, which fell by 34 percent to P2.81 billion. Higher rental income partially offset the decline, according to the holding firm.
Sales cancellations caused the 34-percent decline in real estate revenues to P2.81 billion, reflecting a challenging environment for the middle-income segment.
Coming from a high base last year, total units sold dropped by nearly 40 percent to 1,378, DMCI Holdings said.
Real estate investment management firm Colliers Philippines earlier reported the middle-income segment had among the highest vacancy rates in the residential sector in Metro Manila due to elevated mortgage rates.
