Diversified engineering conglomerate DMCI Holdings, Inc. (PSE: DMC) recorded a 34-percent drop in consolidated third-quarter net income from P 2.8 billion to P1.9 billion owing to weak contributions from its integrated energy, construction and water businesses.
Excluding non-recurring items, core net income for the third quarter slipped 27 percent from P2.6billion to P1.9 billion.
Real estate arm DMCI Homes accounted for 55 percent of the consolidated profits as its third-quarter contributions surged 70% year-on-year to P1 billion.
Over the nine-month period, DMCI Holdings booked P3.9 billion in consolidated net income, 58 percent down from P 9.3 billion last year.
Excluding P592M in losses from sales cancellations for a DMCI Homes project, core net income declined by 52 percent from P9.3B to P4.5B.
Consolidated revenues during the same period contracted 33 percent from P65.9B to P43.9B.
“Among our businesses, Semirara and DMCI were hit hardest by the COVID-19 pandemic. We saw sharp drops in demand and prices for both coal and electricity because of the economic slowdown,” said DMCI Holdings chairman and president Isidro A. Consunji.
“Construction earnings deteriorated because of lower productivity and extraordinary expenses related to the coronavirus,” he added.
Core income contributions from Semirara Mining and Power Corporation plunged 64 percent from P4.7 billion to P1.7 billion primarily due to anemic market conditions and the imposition of coal import quotas in China last August.
DMCI Homes contributed P1.1 billion core income, 40 percent lower from P 1.8 billion last year because of lower revenues due to the imposition of lockdowns which slowed down construction productivity.
From P664 million, D.M. Consunji, Inc. booked a net loss of P97 million because of expenses related to COVID-19, lower construction accomplishments due to the lockdowns and higher costs due to right-of-way issues for infrastructure projects.
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DMCI Power posted an 18-percent growth in earnings contributions from P341M to P403M on the back of higher electricity sales and upward tariff adjustment for its Aborlan power plant.