Diversified engineering conglomerate DMCI Holdings, Inc. registered a 5 percent increase in first-quarter earnings to P4.3 billion from P4.1 billion the previous year. Higher coal prices, water billed volume and construction revenues accounted for the upturn.

Consolidated revenues during the same period grew 8 percent from P18.8 billion to P20.3 billion. “Our power generation business suffered some setbacks this quarter because of the unplanned outages of Sem-Calaca Power Corporation and Southwest Luzon Power Generation Corporation,” said DMCI Holdings Chairman and President Isidro A. Consunji.

“But we believe that higher coal sales and average selling prices will more than offset the impact of these outages on our bottom line,” he added. Main Contributors Semirara Mining and Power Corporation (SMPC) recorded a 3 percent increase in net income for the first three months of the year from P4.4 billion to P4.6 billion, owing to a 24 percent increase in the average selling price of coal.

Consequently, SMPC’s first quarter net income contribution to the Parent rose 3 percent from P2.5 billion to P2.6 billion.

Net income share from DMCI Homes declined 11 percent to P848 million from P950 million during the same period last year due to a slowdown in revenue recognition.

Following the percentage of completion (POC) accounting method, DMCI Homes recognizes revenues based on the progress of its project development and once at least 15 percent of the contract price has been collected from the buyer.

Meanwhile, net income contribution from Maynilad jumped 12 percent from P282 million to P315 million, primarily driven by higher billed volume (4.9%) coupled with a 2.8 percent inflationary rate adjustment on its basic charge beginning January 1 this year.

Other Investments

D.M. Consunji, Inc. posted an 85 percent surge in net income share due to the realization of variation orders from projects nearing completion. From P182 million in the prior year quarter, its contribution to the Parent rose to P336 million.

Earnings contribution from off-grid energy business DMCI Power fell 12 percent from P87 million to P76 million attributable mainly to the lower-than-expected provisional tariff granted to its Aborlan power plant in Palawan.

The company has a pending motion for recomputation with the Energy Regulatory Commission which is expected to be resolved soon.

Shipment of higher grade nickel from old stockpile and lower depreciation costs allowed DMCI Mining to deliver strong growth in the first three months of the year. Its net income contribution grew by 41 percent year on year from P32 million to P45 million.

Other income during the first quarter more than doubled (224%) from P11 million to P37 million because of higher interest income.