DMCI Holdings income soars in H1 2021 led by mining, real estate
By Pilar Manuel | CNN Philippines | August 10, 2021 8:08:15 PM
Photo: CNN Philippines
Metro Manila (CNN Philippines, August 10) — An “exceptional rebound” in its mining and real estate subsidiaries fueled a surge in DMCI Holdings’ earnings during the first semester of 2021, the company has reported.
The Consunji-led diversified engineering conglomerate disclosed to the Philippine Stock Exchange on Tuesday a net income of ₱9.48 billion for the period January to June this year — significantly higher than the ₱2.03 billion it netted during the same period in 2020.
This came as revenues from subsidiaries Semirara Mining and Power Corp. (SMPC), DMCI Mining, and DMCI Homes “exceeded pre-pandemic levels,” the listed company said.
SMPC contributed ₱3.66 billion to DMCI’s total income for the period, jumping from ₱1.3 billion in 2020 due to its “all-time high” coal production in the first three months of 2021 and shipments in the second quarter, along with a “strong rebound” in coal and electricity spot prices.
DMCI Homes, meanwhile, logged ₱2.32 billion in earnings for the semester — skyrocketing from the year-ago ₱38 million. The conglomerate attributed this to higher construction accomplishments and recognition of down payments from new accounts.
Meanwhile, DMCI Mining raked in ₱818 million in the first six months of 2021, compared to ₱184 million last year. The conglomerate said this “came on the back of higher production, average grade and shipment amid a booming nickel market.”
DM Consunji Inc. logged ₱484 million in net income as of end-June compared to ₱92 million a year ago due to more construction operations given looser quarantine rules during the period, higher cost of sales, and slower increase in operational expenditures.
DMCI Power earned ₱270 million, flat from ₱256 million from the first semester of 2020, mainly driven by higher electricity sales in Masbate and Palawan according to the listed firm.
However, Maynilad had a weaker performance during the first half of the year at ₱718 million — dwindling from its ₱847 million tally in 2020. DMCI cited as factors lower billed volume, improved customer mix and average effective tariff, higher cash costs, and a “flattish” non-cash operating expenditures.
“We are within striking distance of returning to our pre-pandemic annual net income of P10.5 billion. Barring any major unforeseen events and if commodity prices hold up, we may be able to finish the year even stronger,” said DMCI Holdings chairman and president Isidro Consunji.
DMCI Holdings shares finished traading on the PSE Tuesday at ₱5.70, up 4.01% from Monday’s close.
Source: CNN Philippines