DMCI Holdings Inc. is ramping up its 2024 capital expenditures to P58.9 billion, up 24 percent from P47.5 billion it spent in 2023 to finance the expansion plans in water, power and mining.
DMCI said in an investor presentation bulk of this year’s capital spending would be for Maynilad Water Service Inc, its joint venture with Metro Pacific Investments Corp.
Maynilad said it would spend P31.4 billion in capital expenditure for 2024 for its wastewater, sewerage and pipe laying projects.
DMCI is also hiking its spending for DMC Power by 133 percent to P2.1 billion to finance a planned wind project and 2×8 megawatt bunker plant.
It is also setting aside P7 billion for Semirara Power and Mining Corp. for refleeting and exploration activities as well as plant maintenance.
DMCI Mining will spend P1.1 billion for 2024, up by 133 percent from a year ago to finance refleeting and exploration projects.
The group’s real estate business will spend P17 billion this year, up 7 percent year-on-year for construction and land banking activities.
DMCI saw its net income decline by 20 percent to P24.9 billion in 2023 as consolidated revenues dropped 14 percent to P122.8 billion from P142.6 billion.
The conglomerate said its real estate business would focus on new formats and joint venture to drive sales, maximize synergies and reduce financial risks.
It will also focus on infrastructure and industrial projects to rebuild its order book. As of end 2023, DMCI’s order book amounted to P41.9 billion.
Among its newly-awarded projects are St Luke’s Medical Center Quezon City (new hospital building), design and build of the augmentation of the recovery capacity at La Mesa treatment plant and design and construction of 20 million of liters per day at Tunasan water reclamation facility.
It is also has ongoing bids and plans to build for various government infrastructure projects.