BUSINESS

DMCI’s 9-month profit down 23%

‘We are working hard to strengthen our group’s ecosystem, enhance operational efficiency to address macroeconomic challenges and weaker commodity prices.’

Maria Bernadette Romero

DMCI Holdings, the diversified engineering conglomerate led by the Consunji Family, sustained a double-digit decline in nine-month profits due to weaker contributions from the integrated energy, real estate and nickel segments. 

In a stock exchange filing on Friday, the company reported that net income from January to September slipped by 23 percent to P15.1 billion from P19.6 billion a year ago. 

Despite the slide, the group noted that the nine-month earnings remain 62 percent higher than the pre-pandemic level of P9.3 billion in 2019 and 12 percent above the pre-global energy crisis level of P13.5 billion in 2021.

Total revenues dropped by 16 percent from P92.40 billion to P77.37 billion, driven by weaker commodity and power prices, reduced construction progress, and real estate revenue recognition. 

However, increased coal shipments and on-grid and off-grid power generation provided some relief.

“Each of our businesses has been affected differently by the new normal in an increasingly complex environment,” DMCI Holdings chairperson and president Isidro A. Consunji said. 

Margins protected

“We are working hard to strengthen our group’s ecosystem, enhance operational efficiency to address macroeconomic challenges and weaker commodity prices, and effectively protect our margins,” he added. 

The integrated energy business saw a nine percent decline in net income contribution, down to P1.76 billion from P1.93 billion last year mainly due to a weaker coal segment, partially offset by stronger power segment contributions and higher coal sales volumes.