Consunji-led diversified engineering and infrastructure conglomerate DMCI Holdings Inc. saw a 32% drop in its net income during the first quarter of 2023 due to the high base effect of all-time high financial results.
In a disclosure to the Philippine Stock Exchange on Wednesday, DMCI Holdings reported a lower net income of P11.3 billion.
This, as revenues fell by 25% from P43.8 billion to P33 billion on lower commodity shipments, easing coal prices, reduced construction accomplishments, fewer real estate accounts that qualified for revenue recognition and higher real estate sales cancellations.
“We anticipate some earnings slowdown this year since we’re coming off a very high base. Our construction and real estate businesses are also still recovering from the impacts of the pandemic,” said DMCI Holdings chairman and president Isidro Consunji.
“Overall, our results should still be better than our pre-pandemic level. We’re also expecting significant growth in our power businesses and Maynilad,” added Consunji.
DMCI Holdings said coal contribution weakened on lower shipments and softening prices, but was offset by record-breaking power contribution on the back of higher plant availability, gross generation, sales volume and average selling prices.
Contribution from Maynilad surged by 64% from P319 million to P523 million on higher billed volume, better customer mix, improved average effective tariff and recovering profit margins, the company said.
Meanwhile, DMCI Mining core net income contribution tapered by 5% from P499 million to P473 million due to the combined effect of lower shipments and better selling prices.
Contribution from DMCI decreased by 26% from P367 million to P273 million on lower construction accomplishment and fewer projects.
DMCI Power core net income contribution rose by 2% from P132 million to P134 million on higher electricity dispatch and better selling prices. — Ted Cordero/RSJ, GMA Integrated News