DMCI Holdings Inc. posted profits of P616 million in the first quarter of the year, down 78 percent from P2.7 billion last year, noting all its businesses “delivered weak performances during the period.”
“Excluding a non-recurring loss of P414 million during the period due mainly to sales cancellations for a DMCI Homes project in Davao City and a net loss of P91 million representing the company’s share in the accelerated depreciation of Calaca Units 1 and 2 last year, core net income dropped 64 percent from P2.8 billion to P1 billion,” the company said.
Isidro Consunji, DMCI chairman, said the group’s results “were weighted down by operational headwinds, low market prices and the initial effects of the enhanced community quarantine (ECQ).”
“We expect the succeeding quarters to be even more challenging because of the full impact of the coronavirus containment measures,” Consunji added.
Profit contributions from Semirara Mining and Power Corp. contracted 51 percent to P623 million from P1.3 billion, due to a 16 percent drop in average coal prices and a 27 percent decline in average electricity prices.
“DMCI Homes fell into negative territory following a slowdown in revenue recognition due to timing of collections and lower construction accomplishments as a result of the ECQ, as well as the increase in construction costs related to the dress-up of units completed in prior years. From a net income of P481 million, it recorded a first-quarter core net loss of P197 million,” the company also said.
Lower margins for a number of projects, higher depreciation and productivity losses due to the ECQ meanwhile resulted in the construction arm D.M. Consunji Inc.’s profit to fall 53 percent to P170 million from P359 million last year.
“DMCI Power contributed P97 million, a 3 percent year-on-year slide from P100 million because of lower electricity dispatch in favor of hydropower plants in Oriental Mindoro,” DMCI said.
Earnings contribution from DMCI Mining dropped 75 percent to P26 million from P103 million, due to the shipment of lower grade nickel which fetched lower prices in the market, it added.
Unit Maynilad Water Services Inc. posted profit contributions of P379 million, down 13 percent from P436 million, on lower consumption among commercial and industrial customers and higher depreciation and amortization due to its capital expenditure program.
