DMCI hikes 2019 capex by 15% to P31b

DMCI Holdings Inc., the investment company of the Consunji family, increased its capital expenditure by 14.8 percent in 2019 to P31 billion from P27 billion in 2018 to expand its real estate, coal and power businesses.

DMCI chief finance officer Herbert Consunji said in an interview of the P31-billion programmed spending for this year, the company was alloting P18 billion for real estate unit DMCI Homes Inc.

Consunji said DMCI Homes was bullish on the demand for housing projects and planned to launch more projects and expand its land bank.

The conglomerate is also investing P10 billion for its coal and power business under Semirara Mining and Power Corp. and P1.3 billion for the expansion of DMCI Power Corp.

DMCI booked a net income of P14.5 billion in 2018, down 2 percent from P14.8 billion in 2017, pulled down by the weak performance of the coal and power generation businesses.

Consolidated revenues rose 3 percent in 2018 to P83 billion from P81 billion in 2017.

The nearly eight-month shutdown of SMPC’s power plant and a decline in coal sales resulted in the group’s lower core net income contribution of P7.4 billion, compared to P8.1 billion in the previous year.

Property unit DMCI Homes registered a 9-percent increase in net earnings to P3.9 billion from P3.6 billion in 2017, as revenues rose 3 percent, boosted by a one-time gain of P715 million from the sale of land. 

Net income contribution from the core business D.M. Consunji Inc. jumped 16 percent to P1.2 billion from P1 billion, led by a 12-percent increase in revenue and recognition of variation orders for projects nearing completion. 

Off-grid energy business DMCI Power saw its net earnings surge 30 percent from P359 million in 2017 to P465 million in 2018. 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 7 percent to P1.8 billion, following a three-percent increase in billed volume.

Topics: DMCI Holdings Inc. , capital expenditure , capex
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