DMCI earnings up 282% in Q1

DMCI Holdings Inc.'s net income reached P2.7 billion in the first quarter of the year, the company reported Monday. In a financial report filed with the Philippine Stock Exchange, DMCI said that the 282-percent rise in net income was due to the partial sale of its stake in Maynilad Water Services for P12 billion, reducing its interest in the water company from  40.98 percent to 25.24 percent. Consolidated revenues, however, declined by one percent year-on-year to P12.86 billion from P13 billion. Because of DMCI's smaller stake in Maynilad, the latter's net income contribution also declined by 12 percent to P539 million from P611 million in 2012. DM Consunji Inc., DMCI's construction busienss, posted a smaller net income of P84 million for the period from P282 million last year as a result of lower margins from recently completed and ongoing building projects. DM Consunji’s balance of work as of end-Q1 was P14.9 billion from P15.7 billion as of end-2012. The bulk of these are power plant construction contracts in Luzon, and does not include the MRT-7 public-private partnership (PPP) project, which had been awarded to DMCI but is still awaiting financial closing. “Although delayed, the company is confident that the infrastructure development programs of the current Philippine government through the Public-Private Partnership (PPP) projects will inevitably materialize,” the company said. The net income of DMCI's real estate business grew 57 percent in the first quarter as real estate sales grew 26 percent year-on-year to P2.2 billion from P1.7 billion and reservation sales rose 15 percent to P5.3 billion from P4.6 billion on sustained demand for condominium units in newly launched projects. — BM, GMA News