DMCI Holdings' first-half profit surges 26% on nickel, cement gains

MANILA, Philippines — DMCI Holdings Inc. grew its first-half earnings by 26 percent to P11.4 billion, buoyed by record contributions from its nickel mining business and a sharp reduction in losses from its cement operations. The Consunji-led conglomerate said on Friday its consolidated net income for the January-to-June period climbed from P9 billion a year ago, with stronger performances across its businesses supporting the growth. The improvement came as DMCI Mining Corp. benefited from record shipment volumes following the full-quarter contribution of the Long Point mine. The new operation increased the miner’s active mines from two to three. The group’s cement business Concreat Holdings Philippines Inc. also moved closer to breakeven. In the second quarter alone, its attributable net loss contribution narrowed by 99 percent to P4 million from P682 million a year earlier, helped by higher cement sales volumes and selling prices, along with continued operational improvements. The firm’s strong first-half performance was reinforced by a 61-percent surge in second-quarter consolidated net income to P6.5 billion from P4 billion. “Higher earnings, driven by integrated energy, nickel mining, real estate, off-grid power, construction and cement businesses, more than offset the lower contribution from Maynilad,” the company said. Electricity accounted for 96 percent of Semirara Mining and Power Corp’s (SMPC) earnings during the period. SMPC contributed P2.7 billion in second-quarter earnings, up 17 percent from P2.3 billion, as record power performance outweighed weaker coal results. DMCI Mining, meanwhile, delivered a record P1.3 billion in second-quarter earnings. This was nearly four times the P344 million booked a year earlier. Property arm DMCI Homes saw net income rise 49 percent to P1 billion from P705 million, supported by higher residential revenues, lower cancellation reversals and improved operating margins. DMCI Power’s contribution increased 9 percent to P406 million on record quarterly energy sales following capacity additions in Masbate and Antique. Construction arm DM Consunji Inc. contributed P195 million, sharply higher than P18 million a year ago, on improved project margins. Maynilad was the outlier, with attributable income falling 17 percent to P810 million from P974 million. DMCI attributed the decline mainly to its reduced effective ownership following the water company’s initial public offering. Information Source: Inquirer Business