DMCI net income up 16%

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EARNINGS of DMCI Holdings, Inc. climbed last year, buoyed by the double-digit growth of the coal energy, real estate and construction segments, as well as the recovery of the nickel mining business.

In a disclosure to the stock exchange on Friday, the Consunji-led firm reported 16% growth in net income attributable to shareholders to P14.8 billion last year from P12.7 billion in 2016 following the restatement of earnings from the housing business.

DMCI Homes restated the 2016 results to reflect the shift in accounting policy from the completed-contract method to the percentage-of-completion method in order to align with current accounting practice in the real estate industry.

Core net income rose at a faster pace of 17% to P14.8 billion from P12.6 billion without the one-time gain of P111 million from the sale of a 10% stake in Subic Water and Sewerage Company.

In the fourth quarter, DMCI Holdings grew its profits by 9% to P3.1 billion from P2.8 billion.

Revenues went up 18% year-on-year to P81 billion from P68 billion.

In a statement, DMCI Holdings Chairman and President Isidro A. Consunji was quoted as saying that “2017 was a challenging year for us but we were able to meet our earnings target of double-digit growth.”

Anchoring the earnings expansion was the strong performance of Semirara Mining and Power Corp., which saw its net profits improve by 15% to P8 billion from P6.9 billion on the back of 20% growth in average coal prices and a 21% jump in gross electric output.

Record real estate sales allowed DMCI Project Developers, Inc. — operating under the DMCI Homes brand — to grow its earnings by nearly half to P3.6 billion from the restated P2.4 billion a year ago.

Construction arm D.M. Consunji, Inc. booked an 11% rise in income to over P1 billion from P938 million due to lower operating costs, favorable settlement of pending claims, and earlier-than-expected completion of some minor projects.

The turnaround of its mining business also pushed the holding firm’s income despite the regulatory uncertainty. DMCI Mining Corp. swung to a net profit of P113 million from a net loss of P65 million following a drop in operating costs and the shipment of 525,000 wet metric tons of nickel ore from its old inventory.

Off-grid energy business DMCI Power Corp. suffered a 15% drop in earnings to P359 million from P424 million primarily due to the expiration of its income tax holiday for its Masbate operations.

Affiliate Maynilad Water Services, Inc. registered a 12% decline in income to P1.6 billion from P1.9 billion because of the delayed implementation of its tariff adjustment coupled with a one-time gain last year from the re-measurement of its deferred tax liability.

In terms of income contribution, Semirara accounted for 54%, DMCI Homes contributed 24%, and Maynilad added 11%. The balance was contributed by the off-grid power, construction, and mining units.

“For 2018, our financial performance will likely be more modest because of tapering electricity rates and the unresolved issues in our nickel mining and water businesses. But we see strong growth from our coal production and real estate segments,” Mr. Consunji said.

Shares in DMCI fell six centavos or 0.45% to close at P13.22 apiece on Friday. — Krista Angela M. Montealegre