DMCI Holdings Profit Surges 26% in First Half on Strong Nickel and Cement Performance

MANILA, Philippines — Record-high contribution from nickel mining and significantly narrower losses from the cement business bolstered first-half earnings of the Consunji family’s DMCI Holdings Inc. The diversified engineering conglomerate reported a net income of P11.4 billion in the first semester, up by 26 percent from P9 billion in the same period last year. In the second quarter alone, the company saw its net income surge by 61 percent to P6.5 billion from P4 billion, supported by improved results across all subsidiaries. Higher earnings from integrated energy, nickel mining, real estate, off-grid power, construction and cement businesses more than offset the lower contribution from Maynilad during the period in review. Semirara Mining and Power Corp. (SMPC) delivered P2.7 billion in second-quarter earnings, 17 percent higher than last year’s P2.3 billion, as record power performance more than offset weaker coal results. At the SMPC level, power accounted for 96 percent of earnings, while coal comprised the remaining four percent. DMCI Mining generated a record P1.3 billion in earnings, nearly four times the P344 million recorded last year, fueled by record shipment volumes following the full quarter contribution of the Long Point mine. The company’s active mines have increased from two to three with the start of Long Point operations. DMCI Homes, for its part, booked P1 billion in net income, up by 49 percent from last year’s P705 million on the back of higher residential revenues, lower cancellation reversals and improved operating margins. Associate Maynilad’s attributable income amounted to P810 million, 17 percent lower than last year’s P974 million, mainly due to the reduction in DMCI Holdings’ effective ownership following the water company’s initial public offering. Meanwhile, DMCI Power posted a nine-percent increase in contribution to P406 million, driven by record quarterly energy sales following capacity additions in Masbate and Antique. Improved project margins likewise boosted D.M. Consunji Inc.’s contribution to P195 million compared with P18 million last year. Concreat Holdings Philippines moved close to break-even, posting an attributable net loss contribution of just P4 million, a 99-percent improvement from the P682 million loss recorded last year. DMCI said the turnaround reflected higher cement sales volumes and selling prices, along with continued operational improvements.