Diversified engineering conglomerate DMCI Holdings, Inc. saw its earnings drop 11 percent from P10.4 billion to P9.3 billion in the first nine months of the year owing to lower income contributions from Semirara Mining and Power Corporation (SMPC), D.M. Consunji, Inc. (DMCI) and DMCI Mining Corporation.

Core net income during the same period contracted by 10 percent from P10.3 billion to P9.3 billion.

For the third quarter alone, DMCI Holdings booked a 47-percent jump in net income to P2.8 billion from P1.9 billion a year earlier.

The double-digit improvement was mainly attributable to the normalized coal operations of SMPC compared to last year when heavy rains in July and August caused a production slowdown.

Excluding a non-recurring loss of P164 million in 2018 due to the share in accelerated depreciation of Units 1 and 2 of Sem-Calaca Power Corporation and a one-time gain of P248 million this year mostly from the share in insurance proceeds received by Southwest Luzon Power Generation Corporation, DMCI Holdings recorded a 24-percent increase in third quarter core earnings from P2.1 billion to P2.6 billion.

“We had a strong third quarter but we still expect negative growth for the full-year because of the scheduled shutdown of Calaca Units 1 and 2, low coal prices and lower construction accomplishments in our real estate business,” said DMCI Holdings Chairman and President Isidro A. Consunji.

Breakdown of Nine-Month Income

For the first nine months, core net income contributions from SMPC dropped 14 percent year-on-year from P5.4 billion to P4.7 billion following a 17-percent decline in power generation and a 22-percent drop in coal prices.

DMCI Homes contributed P1.8 billion core income, flat compared to the same period last year due to lower percentage of completion in ongoing projects.

Core net income contributions from affiliate Maynilad Water Services, Inc. grew 6 percent from P1.5 billion to P1.6 billion owing to a 2-percent growth in billed volume, a 5.7-percent inflation rate adjustment and a 2.7-percent increase in basic charge.

Net income contributions from DMCI declined by 30 percent from P952 million to P664 million as a result of right-of-way acquisition delays and the absence of variation orders realized from projects nearing completion.

Off-grid energy business DMCI Power Corporation contributed P341 million, nearly unchanged from P337 million last year. This was due to the combined effect of lower electricity dispatch in favor of hydropower plants in Oriental Mindoro during the third quarter and the expiration of the company’s supply contract in Sultan Kudarat last December 2018.

DMCI Mining recorded a 35-percent decline in net income contributions from P133 million to P87 million as the company shipped more lower-grade nickel at lower average selling price.

Contributions from DMCI Holdings and other investments during the first nine months grew 8 percent from P171 million to P185 million because of higher interest income.