Diversified engineering conglomerate DMCI Holdings, Inc. expects to finish the year with single-digit growth, on the back of strong performance by most of its business segments.
DMCI Holdings booked a slight 2-percent decline in consolidated net income for the first nine months of the year to PHP11.5 billion due to weak contributions by its coal energy business.
Profit share of Semirara Mining and Power Corporation, which comprises half of the conglomerate’s portfolio, declined 22 percent from PHP6.5 billion to PHP5.1 billion during the period due to the prolonged shutdown of Southwest Luzon Power Generation Corporation (Unit 1), and reduced coal production in Semirara Island because of the continuous rains in July and August.
DMCI Holdings Vice President and Senior Finance Officer Brian Lim said Semirara aims to hit full-year production target of 13 million metric tons (MT) of coal with good weather in the last quarter.
“As of October, it reached 10.5 million MT. With 2.5 million MT (more), I think their coal production target is very doable. For power, four plants are running so hopefully, there are no more outages. The rest, the other subsidiaries, are quite very strong,” he said in an interview Monday night.
DMCI Holdings reported to the local bourse it recorded a 44-percent decline in net income to PHP2.3 billion in third quarter alone, from PHP4.1 billion during the same period last year.
“Aside from Semirara, our construction, real estate and nickel mining businesses also slowed down in the third quarter. But we still expect single-digit growth in our full-year results,” DMCI Holdings Chairman and President Isidro A. Consunji said.
DMCI Homes contributed PHP3.4 billion from January to September, up 29 percent from last year’s PHP2.65 billion, driven by higher revenue and one-time gain on sale of an undeveloped lot.
Net income shares from affiliate Maynilad Water Services, Inc. grew 11 percent from PHP1.3 billion to PHP1.5 billion primarily due to an increase in billed volume and inflationary tariff adjustment.(PNA)
