DMCI Holdings nets P11.1 billion in H1 2024, down 29%

Consunji-led construction, mining, and power conglomerate DMCI Holdings Inc. saw its bottom line decline by double digits in the first half of 2024.

In a disclosure to the Philippine Stock Exchange on Tuesday, DMCI reported a net income of P11.1 billion, down 29% from P15.6 billion in the same period last year.

The company attributed the year-on-year first semester earnings decline to “reduced contributions from the coal mining, on-grid power, real estate and construction subsidiaries, as well as a net loss in the nickel mining business.”

DMCI said stronger contributions from its water and off-grid units partially mitigated the net income decline.

In the second quarter of 2024 alone, the company booked a net income of P5.5 billion, down 32% from P8.1 billion year-on-year.

The April to June bottom line drop “was largely due to weaker performances from its integrated energy, real estate and nickel mining subsidiaries.”

Improved results from its water, off-grid power and construction businesses partially offset the downturn, it said.

“We are now in the new normal. Market prices and global supply chains have normalized, so our challenge is to strategically manage costs, optimize operational efficiency and capitalize on synergies across our business units,” said DMCI Holdings chairman and president Isidro Consunji.

During the quarter, the company said the contribution from Semirara Mining and Power Corp. declined by 41% to P3.4 billion from P5.8 billion last year, as the energy markets normalized. 

Higher coal and electricity sales volumes cushioned the impact of softer selling prices, it said.

DMCI Homes’ contribution also slipped by 43% to P737 million due to lower real estate revenues and higher operating expenses, which were partly offset by increased contributions from joint venture construction revenues, rentals and forfeitures.

DMCI associate Maynilad Water Services, meanwhile, saw a 54% rise in its net income contribution, up from P474 million to P732 million, driven by increased billed volume, higher average effective tariff and slower growth in cash, noncash and finance costs.

DMCI Power posted an all-time high contribution of P355 million, up 54% from P231 million last year, due to double-digit increases in power dispatch and lower direct costs from more affordable fuel use.

Engineering and construction arm D.M. Consunji Inc., moreover, said its net income contribution grew by 73% to P20 million from P139 million “due to lower cash and noncash costs, reduced tax provisions and higher finance income.”

DMCI Mining swung to a P43-million net loss from P250 million in income last year, “as a result of weak market prices, reduced shipments and costs incurred at its Palawan mine.” — BM, GMA Integrated News