DMCI Holdings net income plunges 44% in 2020 as pandemic bites

Consunji-led diversified engineering conglomerate DMCI Holdings Inc. sustained a high double-digit dive in its bottomline in 2020, blamed on the pandemic-induced recession that the country experienced last year.

In a regulatory filing to the Philippine Stock Exchange on Friday, DMCI Holdings said its net income dipped by 44% last year to P5.9 billion from P10.5 billion in 2019.

The decline was largely attributable to the strict quarantine restrictions and economic impacts of the COVID-19 pandemic.

“The community quarantines hit our construction productivity while weak market conditions dragged the sales performance of most of our businesses,” said DMCI Holdings chairman and president Isidro A. Consunji.

The company’s core net income fell 47% year-on-year from P12.4 billion to P6.6 billion.

Core income contribution from Semirara Mining and Power Corporation dropped 65% from P5.7 billion to P2 billion owing to double-digit declines in coal sales at 16% and average selling prices for coal at 23% and electricity at 32%.

DMCI Homes contributed P1.9 billion in crore income, 36% lower year-on-year from P3 billion “as the suspension of non-essential work in the first semester led to a slowdown in construction accomplishments which effectively lowered revenue recognition and unit turnovers.”

Higher construction costs also contributed to the earnings decline, the company said.

DMCI Holdings affiliate Maynilad Water Services Inc. accounted for P1.5 billion, a 13% decline from P1.8 billion in 2019 “owing to lower commercial and industrial sales and higher depreciation and amortization for its water source and wastewater capital investments.”

DMCI Power's income slipped by 12% from P611 million to P537 million due to the absence of a one-time retroactive, its net income increased by 8%.

Core income share from DMCI Mining, meanwhile, jumped 165% from P182 million to P483 million due to a 41% increase in nickel shipments and a 14% increase in average selling prices.

D.M. Consunji Inc. recorded an 88% drop in earnings contribution from P906 million to P109 million “mainly due to lower construction productivity and accomplishments because of the COVID-19 pandemic.”—AOL, GMA News