Higher costs, weaker energy markets, and integration pains from its cement acquisition dragged DMCI Holdings, Inc.’s nine-month profit lower, with net income sliding 22 percent to P11.8 billion from P15.1 billion a year earlier.
The company reported on Friday that, for the third quarter alone, earnings fell even steeper, dropping 33 percent to P2.7 billion, due to sustained pressure from volatile energy prices, weather-disrupted mining operations, and rising production and operating expenses.
The conglomerate added that the contraction was “primarily due to weaker earnings from the integrated energy and construction segments, alongside the ongoing integration of the recently acquired cement business.”
Despite the setback, it pointed to counterweights across its portfolio, citing “stronger performance from real estate, nickel mining, and off-grid power generation, as well as higher equity earnings from associates” that helped temper the downturn.
Semirara Mining and Power Corp. contributed the bulk of earnings at P5.8 billion, although this was 34 percent lower than the P8.9 billion recorded last year, due to softer coal and electricity prices and higher production costs. The unit noted that record shipment volumes and power generation helped cushion the blow.
DMCI Homes delivered P2.7 billion, climbing 11 percent from P2.4 billion, driven by revenues from newly recognized residential accounts, as well as improved rental and financing income.
DMCI Power logged a record P985 million for the nine months, up 4 percent from P947 million, supported by increased energy sales, a new bunker-fired plant in Palawan, and a new power supply agreement in Antique.
DMCI Mining swung back to profitability with P726 million, reversing a P17-million loss a year ago, bolstered by strong nickel prices and higher shipment volumes following the full ramp-up of its new Zambales mine, which expanded active operations from one to two sites.
Construction arm D.M. Consunji, Inc. posted P187 million, sharply lower than P467 million previously, pressed by project delays, higher costs, and conservative revenue recognition.
Meanwhile, cement subsidiary Concreat Holdings Philippines recorded a P1.6-billion net loss, citing elevated financing expenses and weaker revenues.
The company said it is rolling out strategic initiatives to “integrate operations, optimize efficiency, and improve its cost structure.”
Equity earnings from associates and the parent company provided a lift, rising 23 percent to P3.1 billion from P2.5 billion, reflecting stronger combined investment contributions.