Pulled down by weak performance of Semirara Mining and Power Corp. (SMPC), the diversified conglomerate DMCI Holdings, Inc. reported a 26 percent drop on its consolidated net income for the first quarter of 2019 having only P 2.9 billion compared to the P 3.9 billion from the same quarter last year.
DMCI Holdings said in a disclosure to the Philippine Stock Exchange that SMPC suffered a 49 percent decline in its net income contribution from P2.6 billion to P 1.3 billion due to coal priced 18 percent lower while its power generation dropped 21 percent.
DMCI Holdings said all its business segments except for SMPC delivered positive and healthy returns from January to March.
SMPC’s subsidiaries, Southwest Luzon Power Generation Corp. and SEM-Calaca Power Corp. earned P226.10 million and P22.37 million respectively for this year’s first quarter.
Isidro Consunji, chairman and chief executive officer of SMPC, was optimistic for better financial figures for the coal mining and power company in the future.
“The plants are not fully operating this year. Next year will be okay. For coal, production is higher but prices are lower,” Consunji said in a report by Manila Standard.
Despite SMPC’s contribution, DMCI Holdings still saw a three percent chop on its consolidated revenues from P20.3 billion to P 19.7 billion due to strong performance of its construction and off-grid power businesses.
DMCI Mining, the conglomerate’s other mining company that specializes on nickel, also helped in offsetting SMPC’s weak performance. Its net income contribution recorded a staggering 129 percent increase from P 45 million to P 103 million attributed to 118 percent rise in its nickel shipment.
