Diversified engineering conglomerate DMCI Holdings said Tuesday its consolidated net income fell 28 percent in the first nine months as coal and nickel prices began to normalize.
The company said net profit amounted to P20 billion from January to September, down from P27.63 billion in the same period last year.
DMCI Holdings recognized a consolidated net income of P4.1 billion in the third quarter, down 44 percent from P7.3 billion a year earlier on lower contributions from Semirara Mining and Power Corp. (SMPC) and DMCI Mining.
“We saw double-digit contractions in coal and nickel index prices because of the China economic slowdown and global oversupply. However, our power businesses acted as significant buffers,” DMCI Holdings chairman and president Isidro Consunji said.
“Contributions from SEM-Calaca [Power Corporation], Southwest Luzon [Power Generation Corporation] and DMCI Power all grew double digits because of improved generation, sales volume and margins,” he said.
SMPC net income contribution receded 37 percent from P20.4 billion to P12.8 billion due to lower shipments and average selling prices, partly offset by higher power generation, sales and average selling price.
DMCI Homes contributed P3.8 billion, largely unchanged from last year as lower percentage of completion was cushioned by better selling prices and higher income from sales cancellations.
D.M. Consunji Inc. recognized a 32-percent profit contribution downswing from P676 million to P459 million in the absence of new projects and completion of most infrastructure projects.
DMCI Power contributed P632 million, a 15-percent upturn from P549 million on the back of higher electricity sales volume, lower fuel costs and improved margins.
DMCI Mining saw its net income contribution tumble 48 percent from P1.1 billion to P569 million largely from lower selling prices and higher costs.
Contribution from affiliate Maynilad rose 51 percent from P1.1 billion to P1.7 billion on higher billed volume, better customer mix and improved average effective tariff.