DMCI Holdings Inc. saw its net income drop 18 percent to P9.1 billion in the first half of the year from P11.1 billion last year, as weaker contributions from its coal, real estate, and construction units dragged down overall performance amid continued challenges from its newly acquired cement business.

The diversified engineering conglomerate said in a stock exchange report on Wednesday that the decline was due to softer performance from Semirara Mining and Power Corp., DMCI Homes, and D.M. Consunji, Inc., as well as the ongoing integration of its newly acquired cement business.

“We believe that the improvements we are making today will lead to meaningful value for our stakeholders in the long run,” DMCI Holdings Chairman and CEO Isidro A. Consunji said.

“Business transition and integration take time, but our diverse business mix and engineering ecosystem continue to support the Group.”

In the second quarter alone, Semirara Mining contributed P2.3 billion, down 32 percent from P3.4 billion, as selling prices weakened despite record-high coal shipments and power sales.

DMCI Homes posted a P678 million contribution, slightly down from P737 million, as higher revenue recognition was offset by increased costs.

Maynilad Water Services, a DMCI affiliate, increased its contribution by 33 percent to P973 million, driven by higher tariffs and effective cost management efforts.

DMCI Power added P374 million, a 5 percent increase, supported by increased energy sales and new capacities in Palawan and Antique.

DMCI Mining rebounded with P344 million in net income, reversing a P43 million loss, after activating more mines under Zambales Chromite Mining Company.

D.M. Consunji, Inc. contributed just P18 million, down sharply from P250 million, due to project delays and cost pressures.

Meanwhile, Concreat Holdings Philippines posted a net loss of P682 million from April to June on weaker revenues and higher interest expenses.

As of end-June, DMCI maintained a net gearing ratio of 22 percent and a current ratio of 2.4x.