DMCI Holdings Inc. of the Consunji Group said Friday net income fell 44 percent in 2020 to P5.9 billion from P10.5 billion in 2019 amid the strict quarantine restrictions and economic impact of the COVID-19 pandemic.
Excluding non-recurring losses of P1.9 billion mostly coming from one-time non-cash goodwill impairment charge for its Zambales mining assets in 2019 and P708 million pertaining mainly to sales cancellations for a real estate project in 2020, core net income went down by 47 percent to P6.6 billion from P12.4 billion in 2019.
“The community quarantines hit our construction productivity while weak market conditions dragged the sales performance of most of our businesses,” said DMCI Holdings chairman and president Isidro Consunji.
“DMCI Mining was able to beat the downtrend because of strong nickel demand from China amid the Indonesian nickel ore export ban. DMCI Power posted higher sales volume but its revenues fell due to the high base effect of the retroactive tariff adjustment for its Aborlan plant in 2019,” he said.
The company said fourth-quarter consolidated earnings improved 59 percent to P1.9 billion from P1.2 billion from the previous quarter.
Core income contribution from Semirara Mining and Power Corp. dropped 65 percent to P2 billion in 2020 pulled down by double-digit declines in coal sales and average selling prices of coal and electricity.
Real estate unit DMCI Homes contributed P1.9 billion in core income, down 36 percent from P3 billion as the suspension of non-essential work in the first semester led to a slowdown in construction accomplishments which effectively lowered revenue recognition and unit turnovers.
Higher construction costs also contributed to the earnings decline.
D.M. Consunji Inc. recorded an 88-percent decline in earnings contribution to P109 million also on lower construction productivity and accomplishments because of the COVID-19 pandemic.
Income contribution from DMCI Power fell 12 percent to P537 million in the absence of a one-time retroactive adjustment in Palawan’s non-fuel tariff amounting to P113 million in 2019.
Core income share from DMCI Mining jumped 165 percent to P483 million on 41-percent increase in nickel shipments and a 14-percent growth in average selling prices.