Diversified conglomerate DMCI Holdings Inc. booked a net income of P14.5 billion in 2018, down two percent from P14.8 billion in the previous year, on the weak performance of the coal and power generation businesses.
Consolidated revenues, however, improved three percent to P83 billion from P81 billion in 2017.
“Our real estate, construction, off-grid power, mining and water businesses delivered healthy returns in 2018 but the weaker-than-expected performance of Semirara Mining and Power Corporation tempered our consolidated profits,” said DMCI Holdings chairman and president Isidro Consunji.
“SMPC faced a series of unforeseen setbacks like the prolonged shutdown of Unit 1 of Southwest Luzon Power Generation Corporation, inclement weather and China’s soft ban on coal imports,” said Consunji.
Excluding non-recurring gain of P38 million in 2018 and a one-time loss of P281 million in 2017, core net income of DMCI Holdings fell four percent to P14.5 billion
DMCI Holdings recorded P3 billion in net income in the fourth quarter, nearly unchanged from P3.1 billion year-on-year.
The nearly eight-month shutdown of SMPC’s power plant and a decline in coal sales volume, meanwhile, led the the group’s lower core net income contribution of P7.4 billion from P8.1 billion in the previous year.
Property unit DMCI Homes registered a nine-percent increase in net earnings to P3.9 billion from P3.6 billion as revenues rose three percent, boosted by a one-time gain of P715 million on sale of land.
Net income contributions from the core business D.M. Consunji Inc. jumped 16 percent to P1.2 billion from P1 billion due to a 12-percent increase in revenue and recognition of variation orders from projects nearing completion.
Off-grid energy business DMCI Power saw its net earnings surge 30 percent from P359 million co P465 million. The double-digit growth was driven by a 25-percent increase in energy sales volume.
DMCI Mining posted a net income of P117 million, up 4 percent from P113 million in 2017.
Net earnings share from affiliate Maynilad Water Services Inc. increased seven percent to P1.8 billion following a three-percent increase in billed volume.