DMCI Holdings Inc. reported profit in the first half of the year dropped 29 percent to P11.1 billion from P15.6 billion last year.
The company attributed the decline to reduced contributions from the coal mining, on-grid power, real estate and construction subsidiaries, as well as a net loss in the nickel mining business.
“Stronger contributions from the water and off-grid segments partially mitigated these impacts,” it said.
In the second quarter, profit tumbled by 32 percent to P5.5 billion from P8.1 billion.
Revenues were lower by 20.67 percent to P55.52 billion from P69.99 billion last year.
“We are now in the new normal. Market prices and global supply chains have normalized, so our challenge is to strategically manage costs, optimize operational efficiency and capitalize on synergies across our business units,” said Isidro Consunji, DMCI Holdings chairman.
In the second quarter, the net income contribution from Semirara Mining and Power Corp. dropped 41 percent to P3.4 billion from P5.8 billion last year, as the energy markets normalized.
Higher coal and electricity sales volumes cushioned the impact of softer selling prices, DMCI said.
The real estate business under DMCI Homes contributed P737 million, down 43 percent from P1.3 billion, due to lower real estate revenues and higher operating expenses, which were partly offset by increased contributions from joint venture construction revenues, rentals and forfeitures.
“Associate Maynilad Water Services posted a 54 percent surge in net income contribution, rising from P474 million to P732 million, driven by increased billed volume, higher average effective tariff and slower growth in cash, noncash and finance costs,” DMCI also said.
“DMCI Power made an all-time high contribution of P355 million, a 54 percent increase from P231 million last year, due to double-digit increases in power dispatch and lower direct costs from more affordable fuel use,” it added.
The group’s construction service arm DM Consunji Inc. posted a profit contribution of P240 million, up 73 percent from P139 million, primarily due to lower cash and noncash costs, reduced tax provisions and higher finance income.
“Net of eliminating entries, DMCI Mining swung to a P43 million net loss from P250 million in income last year, as a result of weak market prices, reduced shipments and costs incurred at its Palawan mine,” DMCI said.
