Diversified engineering conglomerate DMCI Holdings, Inc. (PSE: DMC) booked a net income of P3.7 billion in the first three months of 2017, a 22 percent jump from P3 billion the previous year. The growth was driven by the strong performance of Semirara Mining and Power Corporation (SMPC).

Excluding a one­time gain of P111 million in 2016 for the partial sale of its stake in Subic Water, core net income improved 26 percent from P2.9 billion in the prior­year quarter.

“2017 will be a better year for us. We expect double­digit growth from our energy and real estate companies, and modest growth from construction and nickel mining” said DMCI Holdings Chairman and President Isidro A. Consunji.

Growth Surge

For the first three months of the year, SMPC recorded a 52 percent surge in net income from P2.9 billion to P4.42 billion, its highest quarterly income, to date.

The significant growth was primarily attributable to the 24 percent increase in coal sales volume and further boosted by a 41 percent upturn in average coal prices.

In effect, SMPC’s first quarter net income contribution to the Parent climbed 53 percent to P2.51 billion from P1.64 billion the previous year.

Lower Results

From P665 million, net income share from DMCI Homes dropped 11 percent to P594 million mainly due to deferred recognition of revenues from its high rise projects which normally take three to four years to complete.

Meanwhile, Maynilad posted a 30 percent drop in net income contributions from P403 million to P282 million, as delays in the implementation of the rate rebasing tariff caused operating expenses to rise faster than revenues from water and sewer services.

Net income contributions from core investment D.M. Consunji, Inc. slipped 8 percent from P197 million to P182 million due to lower revenues and reduced margins from its infrastructure projects.

Off­-grid energy supplier DMCI Power recorded an 11 percent decline in earnings contributions from P98 million to P87 million, following the expiration of its income tax holiday for its Masbate operations.

DMCI Mining returned to profitability in the first quarter, contributing P32 million to the Parent. During the same period last year, the nickel segment reported a net loss of P100 million due to lower shipment volume and depressed nickel ore prices.

Parent and other income stood at P11 million from January to March, a 45 percent reduction from P20 million during the same period last year because of the sale of the 10 percent stake in Subic Water.