DMCI Holdings Inc., the investment company of the Consunji family, is spending P28 billion this year to sustain expansion, a top executive said Tuesday.
DMCI chief finance officer Herbert Consunji said in an interview following the annual stockholders’ meeting the 2017 capital expenditures would include P14.5 billion for the expansion of Semirara Mining and Power Corp. and P4 billion for residential projects under DMCI Homes.
The group’s power unit will spend P1 billion this year while the construction arm will get an allocation of P900 million.
This year’s programmed spending is 75 percent higher than P16-billion actual spending in 2016.
DMCI president Isidro Consunji said he expected the company to perform better this year with coal mining, power and housing businesses delivering strong growth.
“We expect to post better financial results in 2017 with the continued expansion of SMPC, strong rebound of the DMCI Homes and higher electricity sales from DMCI Power,” Consunji said,
“The growth of DMCI will likely be moderated by legal and regulatory issues arising from delays in the project bidding, contract awarding and right of way acquisitions,” he said.
Consunji said he expected DMCI Mining to continue to face challenges with the changing regulatory landscape. The company intends to exhaust all remedies so that its two nickel mining projects can resume operations, he said.
SMPC is also looking to increase coal production to 16 million metric tons and take advantage of local demand.