Consunji-led diversified engineering conglomerate DMCI Holdings Inc. suffered a 29 percent decline in net income to P11.1 billion in the first half from P15.6 billion in the same period a year ago.
For the second quarter alone, DMCI saw its net income slip by 32 percent to P5.5 billion, from P8.1 billion last year.
The company said on Tuesday that the drop was primarily triggered by the weaker performance from its integrated energy, real estate and nickel mining subsidiaries.
Improved results
However, it pointed out that the improved results from its water, off-grid power and construction businesses partially offset the downturn.
“We are now in the new normal. Market prices and global supply chains have normalized, so our challenge is to strategically manage costs, optimize operational efficiency, and capitalize on synergies across our business units,” DMCI Holdings chairman and president Isidro A. Consunji said.
During the second quarter, the consolidated earnings of the group remained relatively stable, experiencing a slight two percent dip from P5.6 billion compared to the previous quarter.
However, when compared to the pre-pandemic level of P3.7 billion recorded in the second quarter of 2019, the group’s bottom line showed a significant increase of 49 percent.
Within the same quarter, Semirara Mining and Power Corp.’s net income contribution saw a notable decline of 41 percent from P5.8 billion last year to P3.4 billion due to normalizing energy markets.
Buffer
Despite lowered sales prices, the company’s financial performance was somewhat shielded by an increase in the volume of coal and electricity sales, which served as a buffer.
DMCI Homes’ contribution decreased by 43 percent year-over-year, falling from P1.3 billion to P737 million, primarily attributed to lower real estate revenues and higher operating expenses.