Daily Tribune‘We do not expect coal, nickel, and electricity prices to recover to the highs of the past two years due to shifts in demand-supply dynamics.’ DMCI’s first-quarter consolidated net income slipped by 25 percent to P5.6 billion from P7.5 billion in 2023 due to reduced contributions from its businesses
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The Consunji family’s DMCI Holdings Inc. has endured a challenging business landscape characterized by unstable market prices which has led to a significant decrease in company profits during the first quarter of this year.
The diversified engineering conglomerate said on Wednesday that its first-quarter consolidated net income slipped by 25 percent to P5.6 billion from P7.5 billion last year due to reduced contributions from its businesses.
Likewise, its consolidated revenue dropped by 17 percent to P27.4 billion from P33.0 billion due to stabilizing coal, nickel, and electricity prices. The lower construction accomplishments and fewer real estate accounts also affected the company’s financial performance.
Market-price challenged
In a statement, DMCI Holdings chairman and president Isidro A. Consunji admitted that market prices challenged the company early this year.
“We do not expect coal, nickel, and electricity prices to recover to the highs of the past two years due to shifts in demand-supply dynamics,” Consunji said.
Nonetheless, he said reinforcements are underway to recover from the slump.
“To mitigate these external challenges, we will focus on improving operational efficiency and refining our marketing strategies to enhance the value of our products and services,” he said.
Net income contribution from Semirara Mining and Power Corp. (SMPC) dropped by 27 percent to P3.7 billion from P5.1 billion due to weaker market prices that muted the impact of higher coal shipments and electricity dispatch.
DMCI Homes contributed P879 million, a 12-percent drop from P994 million primarily due to revenue recognition slowdown from ongoing and new accounts.
However, the contribution from affiliate Maynilad increased by 28 percent from P519 million to P664 million owing to higher billed volume, better customer mix, and improved average effective tariff.
DMCI Power nearly doubles contribution
DMCI Power nearly doubled its contribution by 97 percent to P264 million from P134 million, driven by increased generation capacity and electricity demand, coupled with lower fuel expenses.
D.M. Consunji, Inc. contributed P98 million, a 64-percent drop from P273 million due to project delays and fewer ongoing projects.
DMCI Mining experienced a sharp reversal, shifting from a P473 million net income to a P22 million net loss due to decreased shipments, lower nickel grades, and weaker selling prices.
