DMCI Holdings Inc., a diversified engineering conglomerate, saw its consolidated net income decline by 28 percent in the first nine months of the year, from P27.63 billion to P20.01 billion.

In a stock exchange disclosure on Tuesday, the Consunji Family's DMCI Holdings attributed the profit decline to the combination of high base effect, lower commodity prices and declining construction accomplishments.

The company noted that the weaker bottom-line during the period slightly cut the earnings per share from P2.08 to P1.51 each.

However, the company still generated a double-digit return on equity of 18.4 percent.

Earnings tightened

As a result, the EBITDA margin tightened from 42 percent to 38 percent, while the net income margin slimmed from 38 percent to 32 percent on softer topline generation.

Total revenues contracted by 19 percent from P114.30 billion to P92.40 billion due to the combined effect of normalizing commodities and electricity prices, reduced coal shipments, lower construction accomplishments, higher revenue reversals from real estate sales cancellations, and fewer new real estate accounts that qualified for revenue recognition.

Total cash costs dropped by 13 percent, from P65.98 billion to P57.51 billion, due to lower royalty expenses and direct costs. These were caused by lower coal production and construction achievements.

Integrated energy firm Semirara Mining and Power Corp., property developers DMCI Homes, and west zone concessionaire Maynilad Water Services Inc. contributed 92 percent of core net income.

Last October, the Board of Directors declared P9.56 billion or P0.72 per share in special cash dividends, scheduled for payment on 9 November. With this, the company's total payout for the year will reach P19.12 billion — the highest ever for the company.