DMCI income drops to P9.2 B in January-September

MANILA, Philippines - Consunji-owned engineering conglomerate DMCI Holdings Inc. posted P9.2 billion in consolidated net earnings in the first nine months of the year,  down six percent from 2015.

The company attributed the decline in income to weak profit contributions from its real estate, nickel mining and water businesses.

Higher earnings from Semirara Mining and Power Corp offset the decline in the other businesses.

Excluding a one-time gain of P111 million from the sale of its 10 percent stake in Subic Water and Sewerage Company, core net income slipped two percent to P9.1 billion.

Consolidated revenues were flat at P45.1 billion compared to P45.6 billion last year.

 DMCI Holdings chairman and president Isidro Consunji said the  “earnings results were in line with our forecast.”

“Although our construction and energy businesses did well, the revenue recognition timing issue of DMCI Homes and the income tax holiday expiration of Maynilad significantly weighed down on  our consolidated results,” he said.

“The suspension of DMCI Mining’s two operating units also accounted for our sluggish earnings,” Consunji added.

 Semirara contributed higher earnings surging 52 percent to P5.4 billion, mainly due to higher coal export sales and the commercial operations of Southwest Luzon Power Generation Corp.

Similarly, D.M. Consunji more than doubled its net income to P732 million from P361 million due to the full recognition of cost overruns for a power plant in 2015.