DMCI Holdings, Inc., one of the biggest companies in the Philippines, saw a decline in its earnings for 2018 despite having most of its businesses experiencing increase in net income including DMCI Mining with a growth of four percent.
DMCI Mining’s four percent increase which is equivalent to P 117 million compared to 2017’s P 113 million is attributed to the 22-percent rise in nickel shipment volume of higher-grade nickel.
On the other hand, DMCI Holdings’ slight earning decline of two percent for 2018 or P 14.5 billion from last year’s P 14.8 billion is due to the weakness of its coal business.
“Our real estate, construction, off-grid power, mining and water businesses delivered healthy returns in 2018 but the weaker-than-expected performance of Semirara Mining and Power Corporation (SMPC) tempered our consolidated profits,” DMCI Holdings chairman and president Isidro Consunji said in an article by the Philippine News Agency.
Even with the decline from P 8 billion, SMPC remained the biggest contributor to the conglomerate’s portfolio with P 6.8 billion net income shares for 2018 as per Brian Lim, DMCI Holdings’ Vice President for Finance.
The said weakening of SMPC is attributed to a number of unfortunate reasons such as Southwest Luzon Power Generation Corporation’s (SLPGC) Unit 1 the prolonged shutdown, severe weather, and China’s soft ban on coal imports all resulting in it pulling its parent company’s total earnings.
DMCI Holdings also blame the decline in its net income contribution to a 12-percent drop in coal sales volume.
Meanwhile, DMCI Homes had a nine-percent increase in net income or P 3.9 billion, while an impressive 30 percent upsurge allowed DMCI Power to end last year with P 465 million in net earnings thanks to higher energy sales.
Maynilad, an affiliate of DMCI Holdings, recorded a Higher billed volume increased net earnings share from P 1.6 billion to P 1.8 billion.
A 16 percent rise from P 1 billion to P 1.2 billion was contributed by DMCI Holdings’ core business D. M. Consunji, Inc. due to a 12-percent rise in revenue and recognition of variation orders from projects nearing completion.
