Diversified engineering conglomerate DMCI Holdings, Inc. reported a 590-percent increase in first-quarter earnings from P616 million to P4.3 billion as income drivers DMCI Homes and Semirara Mining and Power Corporation (SMPC) delivered exceptional performances during the period.
Excluding a non-recurring loss of P414 million last year due mainly to sales cancellations for a DMCI Homes project and a non-recurring gain of P167 million owing to deferred tax remeasurement impact of CREATE Law on Maynilad’s service concession asset and a P12 million gain on sale of land of DMCI Homes this year, consolidated core net income surged 295 percent from P1.0 billion to P4.1 billion.
“We had a better-than-expected Q1 because of higher construction accomplishments and better coal sales. With the exception of Maynilad, all of our businesses also did very well” said DMCI Holdings chairman and president Isidro A. Consunji.
“Our performance in the next quarters will largely depend on how the prices of coal, nickel and electricity will hold up. We also expect some operational headwinds for SMPC given the abnormal water seepages at Molave North Block 7 and the forced plant outages,” he added.
DMCI Homes staged a resounding comeback with core net income contributions accelerating 898 percent from a net loss of P197 million to a net income of P1.6 billion mostly on higher construction accomplishments and recognition of down payment from new accounts.
Net income contributions from SMPC more than doubled (113%) from P623 million to P1.3 billion as its coal business and subsidiary Southwest Luzon Power Generation Corp. benefited from improved demand and average selling prices for coal and electricity.
DMCI Mining recorded a dramatic upturn with its income contributions rising 1,496-percent from P26 million to P415 million due to the combined effect of higher production, shipment, nickel grade and average selling price.
Contributions from D.M. Consunji, Inc. doubled from P170 million to P342 million on higher construction accomplishments and minimal expenses related to COVID-19.
Quarantine restrictions continued to weaken billed volume and average effective tariff for Maynilad, which led to a 24-percent decline in core net income contributions from P379 million to P287 million.
DMCI Power contributed P118 million, a 22-percent upswing from P97 million on the back of higher electricity sales and lower fuel costs because of the commercial operation of its 15MW Masbate thermal plant.
Income from parents and others recovered by 143 percent from a net loss of P68 million to a net income of P13 million in the absence of expenses related to the COVID-19 pandemic.