Diversified engineering conglomerate DMCI Holdings, Inc. booked P11.5 billion in consolidated net income for the first nine months of the year, a 2 percent slip from P11.7 billion last year due to weak contributions from its coal energy business.

Excluding a P715 million one-time gain on sale of an undeveloped lot by DMCI Homes and P66 million refinancing and other one-time costs of Maynilad, core net income from January to September contracted 8 percent to P10.8 billion from P11.8 billion year-on-year.

For the third quarter alone, DMCI Holdings recorded a 44 percent decline in net income to P2.3 billion from P4.1 billion during the same period last year.

“Aside from Semirara, our construction, real estate and nickel mining businesses also slowed down in the third quarter. But we still expect single-digit growth in our full-year results,” said DMCI Holdings Chairman and President Isidro A. Consunji.

Breakdown of Nine-Month Income

For the first nine months, net income contributions from Semirara Mining and Power Corporation dropped 22 percent year-on-year from P6.5 billion to P5.1 billion due to the prolonged shutdown of Southwest Luzon Power Generation Corporation (Unit 1), reduced coal production in Semirara Island because of continuous rains in July and August and higher strip ratio.

DMCI Homes contributed P3.4 billion from January to September, a 29 percent improvement from P2.65 billion during the same period last year. The double-digit growth was attributable to a one-time gain on sale of an undeveloped lot, 2 percent growth in revenue and 7 percent upturn in reservation sales.

Net income contributions from affiliate Maynilad Water Services, Inc. grew 11 percent from P1.3 billion to P1.5 billion primarily due to a 2.8 percent increase in billed volume, 2.8 percent inflationary tariff adjustment, and improved customer mix.

Construction arm D.M. Consunji, Inc. delivered a 12 percent growth in net income share from P851 million to P952 million on the back of higher accomplishment in building projects and the realization of variation orders from projects nearing completion.

Off-grid energy business DMCI Power Corporation contributed P337 million, a 4-percent upturn from P324 million last year. The lower-than-expected provisional tariff for its Aborlan bunker plant in Palawan muted the effect of the 25 percent increase in electricity sales volume on the bottom line.

DMCI Mining Corporation recorded a 14 percent increase in net income contributions from P117 million to P133 million during the first nine months of the year, following the shipment of 482,762 wet metric tons (WMT) of higher grade nickel ore from its old stockpile.

Other income during the first nine months more than doubled (242%) from P50 million to P171 million because of higher interest income.