DMCI Holdings posts P9.79B income in 2012

MANILA, Philippines - Consunji-led DMCI Holdings Inc. recorded a slight growth in its earnings last year, driven by the uptick in its real estate and electricity sales.

In its 2012 financial report, DMCI said its income inched up two percent to P9.79 billion from P9.59 billion a year ago.

It was backed by an 8.4-percent gain in consolidated revenues to P51.8 billion, primarily driven by the growth in construction, real estate and power generation revenues that offset lower nickel ore and coal sales.

“With the significant drop in the global price of nickel ore, the increase in cost of construction materials and labor, and the lower average coal price, net income showed a modest increase compared to revenue,” DMCI Holdings said.

Specifically, profits of top contributor Maynilad Water Services Inc. rose three percent to P2.26 billion from P2.19 billion in 2011.

“Combined revenues from water and sewer services for the year grew 15.6 percent to P15.4 billion from P13.3 billion last year,” DMCI said, adding that increase was due to a 5.8-percent gain in billed volume coupled with a 9.2-percent climb in average effective tariff.

However, deferred implementation of the tariff increase and higher proportion of billed volume growth coming from subsidized consumers dampened Maynilad’s performance last year.

Early this year, partners DMCI and Metro Pacific Investments Corp. sold a 20-percent stake in West Zone concessionaire Maynilad for around $400 million.

The property business was also another bright spot for DMCI.

DMCI Project Developers Inc., which operates under the brand name DMCI Homes, posted a 22-percent growth in net income to P2.18 billion last year as recognized revenues jumped 12 percent to P9.2 billion.

“Amidst the presence of aggressive competition within its market, sales and reservations take up for the year was sustained at P17.1 billion, equivalent to an average monthly take up of P1.4 billion, same in 2011,” DMCI said.

Coal mining and power generation operations through Semirara Mining Corp. recorded mixed results in 2012.

“Semirara reported a decline in net income of P3.1 billion compared to P4.1 billion last year mainly due to lower average coal prices despite a 10-percent increase in coal sales volume,” DMCI said.

But net income coming from power generation surged to P3.3 billion from P1.9 billion “due to higher energy generation capacity from the newly rehabilitated Calaca power plants.”

The holding firm’s construction business contributed P1.22 billion in earnings, up nine percent from a year ago due to a 44-percent spike in revenues to P14.8 billion.

“This was mainly due to billable works done for the building projects,” DMCI said.

For instance, the completion of the Solaire Resorts and Casino and The Raffles Suites and Residences boosted revenues.

Nickel mining’s income contribution sank 63 percent to P341 million from P917 million in 2011, weighed down by soft prices.

DMCI also has a minority stake in the San Miguel Corp.-controlled Private Infrastructure Development Corp., the firm that will build the P18-billion, 88-kilometer Tarlac-Pangasinan-La Union Expressway.