DMCI ramps up 2018 capex to P41 billion

MANILA, Philippines — Diversified engineering conglomerate DMCI Holdings Inc. is ramping up its capital expenditures this year to P41 billion to support expansion plans across its businesses.

This year’s capex is 21 percent higher from last year’s P34 billion spending.

Bulk of the 2018 capex will go to property unit DMCI Homes at P16 billion, followed by P13 billion for Semirara Mining and Power Corp., DMCI executive director Herbert Consunji said yesterday on the sidelines of the company’s annual stockholders meeting.

Some P9 billion has been earmarked for Maynilad, while another P2 billion has been allocated to off-grid energy business DMCI Power.

“We anticipate more modest gains in 2018 because of declining electricity rates and the unresolved issues in our nickel mining and water businesses. Our bright spots will be real estate and coal,” DMCI Holdings chairman and president Isidro Consunji said.

“We believe that the robust economy, coupled with the superior quality and unique features of our real estate projects, will sustain customer demand,” he added.

DMCI’s earnings in the first quarter stood at P4.3 billion, up five percent from P4.1 billion in the same period last year behind higher coal prices, water billed volume, and construction revenues.

Consolidated revenues during the period grew eight percent to P20.3 billion from P18.8 billion last year.