Conglomerate DMCI Holdings Inc. of the Consunji family said Tuesday its second-quarter net income dropped 32 percent to P5.5 billion from P8.1 billion recorded in the same period last year.
DMCI attributed the decline to weak performances from its integrated energy, real estate and nickel mining subsidiaries, which offset the improved results from its water, off-grid power and construction businesses.
The company said in a stock exchange filing that excluding non-recurring items, core net income also fell 32 percent to P5.5 billion from P8.1 billion.
“We are now in the new normal. Market prices and global supply chains have normalized, so our challenge is to strategically manage costs, optimize operational efficiency and capitalize on synergies across our business units,” said DMCI Holdings chairman and president Isidro Consunji.
First-half net income also declined by 29 percent to P11.2 billion from P15.6 billion a year ago on reduced contributions from coal mining, on-grid power, real estate and construction subsidiaries as well as a net loss in the nickel mining business.
Stronger contributions from the water and off-grid segments partially mitigated these impacts.
Net income contribution from Semirara Mining and Power Corp. declined 41 percent in the second quarter to P3.4 billion from P5.8 billion last year, as the energy markets normalized.
Higher coal and electricity sales volumes cushioned the impact of softer selling prices.
The property business under DMCI Homes contributed P737 million, down 43 percent from P1.3 billion, due to lower real estate revenues and higher operating expenses, which were partly offset by increased contributions from joint venture construction revenues, rentals and forfeitures.
Maynilad Water Services Inc. posted a 54-percent surge in net income contribution to P732 million, driven by increased billed volume, higher average effective tariff and slower growth in cash, noncash and finance costs.
DMCI Power delivered an all-time high contribution of P355 million, a 54-percent increase from P231 million last year, due to double-digit increases in power dispatch and lower direct costs from more affordable fuel use.
Construction unit D.M. Consunji Inc. saw its net income contribution go up by 73 percent to P240 million, primarily due to lower cash and noncash costs, reduced tax provisions and higher finance income.
DMCI Mining swung to a P43-million net loss from P250 million in income last year due to weak market prices, reduced shipments and costs incurred at its Palawan mine.
