Consunji-led DMCI Holdings sees a return to pre-pandemic earnings level this year as it sustained a triple-digit growth in second quarter earnings on the back of robust coal, property and nickel mining businesses.
DMCI’s second quarter net profit surged by 269 percent year-on-year to P5.23 billion and likewise topped first quarter’s bottom line by 23 percent. Excluding non-recurring items, second quarter core net income surged by 166 percent year-on-year to P4.23 billion.
This brought first half net income to P9.5 billion, nearly five times larger than the level seen last year, when quarantine restrictions were at their strictest in the second quarter.
“We are within striking distance of returning to our pre-pandemic annual net income of P10.5 billion. Barring any major unforeseen events and if commodity prices hold up, we may be able to finish the year even stronger,” DMCI Holdings chair and president Isidro Consunji said in a disclosure to the Philippine Stock Exchange on Tuesday.
Excluding non-recurring items, consolidated core net income in the first semester likewise surged by 217 percent year-on-year to P8.3 billion. There was a non-recurring gain of P1.2 billion booked this year relative to the revaluation of deferred tax liabilities as a result of the Corporate Recovery and Tax Incentives for Enterprises (CREATE) law while the comparative income last year recognized a P586 million loss mainly from sales cancellations for a real estate project.
“Coal and nickel prices were rallying while our production was ramping up so our second quarter was even better than our first quarter. Revenue recognition in our real estate business also improved on higher productivity,” Consunji said.
Semirara Mining and Power Corp. (SMPC), DMCI Homes and DMCI Mining contributed most to the profit upswing.
SMPC contributed P3.7 billion in the first semester, close to a threefold increase from the previous year, owing to its all-time high coal production in the first quarter, all-time high shipments in the second quarter and strong rebound in coal and electricity spot prices.
Contribution from DMCI Homes soared by 6,018 percent to P2.3 billion from a low base of P38 million last year due to higher construction accomplishments and recognition of downpayment from new accounts.
Nickel mining arm DMCI Mining accounted for P818 million in the first half, marking a 345-percent improvement year-on-year, driven by higher production, average grade and shipment amid a booming nickel market.
Construction arm D.M. Consunji Inc. contributed P484 million, 426 percent higher year-on-year owing to higher construction accomplishments and minimal coronavirus-related expenses.
Six-month contribution from off-grid power provider DMCI Power grew by 5 percent year-on-year to P270 million because of higher electricity sales to Masbate and Palawan.
On the other hand, affiliate Maynilad Water Services Inc. was the only business that posted lower earnings. Its contribution declined by 15 percent year-on-year to P718 million as quarantine measures led to a 3-percent drop in billed volume.
Income from parent and others recovered by 132 percent from a net loss of P57 million to a net income of P18 million on the absence of expenses related to the COVID-19 pandemic.