DMCI on track for another record year for profitability  

MANILA, Philippines — Construction and engineering conglomerate DMCI Holdings Inc. reported a nine-month income of P27.6 billion this year, already surpassing its full-year profit record of P18.9 billion booked in 2013.

The nine-month earnings more than doubled from the P13.5 billion income posted in the same period a year ago.

Excluding a non-recurring gain of P1.2 billion last year owing to deferred tax re-measurement in relation to CREATE Act and gain on land sale, consolidated core net income from January to September rose even faster at 124 percent to P27.6 billion from P12.3 billion.

DMCI Holdings chairman and president Isidro Consunji said all subsidiaries delivered robust results during the nine-month period, led by Semirara Mining and Power Corp.

“But we expect to feel some profit weakness in the last quarter because of higher raw material costs and construction slowdown,” he said.

Core net income rose by 84 percent to P7.4 billion from P4 billion a year ago on higher contributions from the coal, power and real estate businesses.

The conglomerate’s balance sheet remained healthy as total assets reached P251 billion and net debt-to-equity ratio stood at eight percent for the three months ended September 30, 2022.

By different business segments, SMPC net income contribution more than tripled to P20.4 billion due to elevated market price.

DMCI Homes, the residential business, posted a net income of P3.9 billion, a 19-percent jump from P3.2 billion, on the back of higher selling prices.

Similarly, DMCI Mining grew its net income by 11 percent to P1.1 billion from P983 million as higher average selling price amid elevated exchange rates offset the impact of lower shipment due to the depletion of its Berong mine.

Its engineering and infrastructure arm, D.M. Consunji Inc., recognized a 16-percent profit upswing to P676 million from P585 million with the completion of some building and infrastructure projects.

DMCI Power grew its net income by 28 percent to P549 million from P428 million on higher electricity sales volume amid elevated selling prices.

On the other hand, contribution from affiliate Maynilad was mostly flat at P1.1 billion due to sluggish billed volume growth and higher cash operating expenses.