Diversified engineering conglomerate DMCI Holdings, Inc. recorded a 78 percent decline in first-quarter earnings from P2.7 billion to P616 million as all of its businesses delivered weak performances during the period.

Excluding a non-recurring loss of P414 million during the period due mainly to sales cancellations for a DMCI Homes project in Davao City and a net loss of P91 million representing the company’s share in the accelerated depreciation of Calaca Units 1 and 2 last year, core net income dropped 64 percent from P2.8 billion to P1 billion.

“Our consolidated results were weighted down by operational headwinds, low market prices and the initial effects of the enhanced community quarantine (ECQ),” said DMCI Holdings chairman and president Isidro A. Consunji.

“We expect the succeeding quarters to be even more challenging because of the full impact of the coronavirus containment measures,” he added.

Core net income contributions from Semirara Mining and Power Corporation contracted 51 percent from P1.3 billion to P623 million owing to a 16 percent drop in average coal prices and a 27 percent drop in average electricity prices.

DMCI Homes fell into negative territory following a slowdown in revenue recognition due to timing of collections and lower construction accomplishments as a result of the ECQ, as well as the increase in construction costs related to the dress-up of units completed in prior years. From a net income of P481 million, it recorded a firstquarter core net loss of P197 million.

Lower margins for a number of projects, higher depreciation and productivity losses due to the ECQ resulted in a 53 percent reduction in net income contribution from D.M. Consunji, Inc., from P359 million to P170 million.

DMCI Power contributed P97 million, a 3 percent year-on-year slide from P100 million because of lower electricity dispatch in favor of hydropower plants in Oriental Mindoro.

Earnings contribution from DMCI Mining dropped 75 percent from P103 million to P26 million due to the shipment of lower grade nickel which fetched lower prices in the market.

Net income contributions from Maynilad fell 13 percent from P436 million to P379 million due to lower consumption among commercial and industrial customers and higher depreciation and amortization due to its capital expenditure program.