DMCI Q1 profit drops on weaker coal prices

The stabilizing coal prices and losses from its cement business weighed down the first-quarter net income of DMCI Holdings, Inc., the diversified engineering conglomerate led by the Consunji family.

In a stock exchange report on Wednesday, the company said net income from January to March clocked in at P5.1 billion, down 9 percent from P5.6 billion a year earlier.

However, stronger results from real estate, water, nickel mining, and off-grid power helped offset weaker contributions from coal and construction, underscoring the group’s diversified portfolio.

“Market conditions today are very different from five years ago, but our businesses have adapted well,” said DMCI Holdings Chairman and CEO Isidro A. Consunji.

“We continue to pursue organic growth across the portfolio, while laying the groundwork for a successful transformation of our cement operations.”

Semirara Mining and Power Corp. contributed P2.5 billion, down 31 percent from P3.7 billion, as coal prices stabilized and lower-grade shipments increased.

DMCI Homes posted a 56 percent jump in contribution to P1.4 billion from P879 million, driven by newly recognized accounts, higher income from forfeitures and rentals, and stronger finance income.

Associate Maynilad Water Services raised its contribution by 39 percent to P926 million, from P664 million, on a higher average effective tariff and lower cash costs despite a dip in billed volume.

DMCI Power earned P270 million, up 2 percent from P264 million, on higher energy sales and added bunker-fired capacity in Palawan.

DMCI Mining swung to a P409 million profit from a P22 million loss, supported by stronger operations and selling prices following the full activation of Zambales Chromite Mining Co., which raised its active mine count to two.

D.M. Consunji, Inc.'s contribution fell to P50 million from P98 million due to higher cash costs, project delays, and conservative revenue recognition.

Newly acquired Concreat Holdings Philippines, formerly Cemex Philippines, posted a P546 million net loss amid reduced volumes and higher interest expense. Integration efforts are underway to support its turnaround.