• DMCI Homes contributions up 70% in Q3

• DMCI Power and DMCI Mining deliver resilient growth

• SMPC and DMCI hardest hit by the COVID-19 pandemic

Diversified engineering conglomerate DMCI Holdings, Inc. (PSE: DMC) recorded a 34-percent drop in consolidated third-quarter net income from Php 2.8 billion to Php 1.9 billion owing to weak contributions from its integrated energy, construction and water businesses.

Excluding non-recurring items, core net income for the third quarter slipped 27 percent from Php 2.6 billion to Php 1.9 billion.

Real estate arm DMCI Homes accounted for 55 percent of the consolidated profits as its third-quarter contributions surged 70% year-on-year to Php 1.0 billion.

Over the nine-month period, DMCI Holdings booked Php 3.9 billion in consolidated net income, 58 percent down from Php 9.3 billion last year.

Excluding Php 592 million in losses from sales cancellations for a DMCI Homes project, core net income declined by 52 percent from Php 9.3 billion to Php 4.5 billion. Consolidated revenues during the same period contracted 33 percent from Php 65.9 billion to Php 43.9 billion.

“Among our businesses, Semirara and DMCI were hit hardest by the COVID-19 pandemic. We saw sharp drops in demand and prices for both coal and electricity because of the economic slowdown,” said DMCI Holdings chairman and president Isidro A. Consunji.

“Construction earnings deteriorated because of lower productivity and extraordinary expenses related to the coronavirus,” he added.

9-Month Earnings Breakdown

Core income contributions from Semirara Mining and Power Corporation plunged 64 percent from Php 4.7 billion to Php 1.7 billion primarily due to anemic market conditions and the imposition of coal import quotas in China last August.

DMCI Homes contributed Php 1.1 billion core income, 40 percent lower from Php 1.8 billion last year because of lower revenues due to the imposition of lockdowns which slowed down construction productivity.

From Php 664 million, D.M. Consunji, Inc. booked a net loss of Php 97 million because of expenses related to COVID-19, lower construction accomplishments due to the lockdowns and higher costs due to right-of-way issues for infrastructure projects.

DMCI Power posted an 18-percent growth in earnings contributions from Php 341 million to Php 403 million on the back of higher electricity sales and upward tariff adjustment for its Aborlan power plant. Strong China nickel demand coupled with a 41-percent jump in production and the prevailing Indonesian nickel ore export ban allowed DMCI Mining to boost its income contributions by 190 percent from Php 87 million to Php 252 million.

Contributions from affiliate Maynilad fell 22 percent from Php 1.6 billion to Php 1.2 billion owing to lower commercial sales and average effective tariff, aggravated by higher amortization and depreciation expenses.

Lower interest income led to a Php 54 million net loss for the parent and other investments compared to a net income of Php 185 million during the same period last year.