The Market Monitor Minding the Nation's Business
Listed conglomerate DMCI Holdings Inc. reported a flat core net income for last year of P12.1 billion from P12.3 billion a year ago.
The company said the even growth was due to the deferred recognition of revenues from completed high-rise projects and the expiration of Maynilad income tax holiday.
Including a one-time gain of P530 million from the sale of DMCI’s 25.11 percent share in Phivida Infra Dev Corp (PIDC) in 2015, and a one-time gain of P111 million on the partial sale of Subic Water in 2016, DMCI Holdings reported consolidated net income of P12.2 billion in 2016 which was five percent lower than the P12.8 billion profit the previous year.
DMCI integrated energy unit Semirara Mining and Power Corp (SMPC) registered a 43 percent increase in income contribution to the DMCI Holdings.
SMPC achieved an all-time high in consolidated net income of P12 billion in 2016 and contributed to the DMCI Holdings income of P6.9 billion from P4.8 billion in the comparable years.
The company attributed the strong performance due to the higher sales from coal and power businesses.
DMCI Homes recorded higher sales and reservation numbers for a total of 8,236 units exhibiting a growth of 55 percent for 2016.
Maynilad earnings before income tax, depreciation and amortization (EBITDA) grew three percent at P14.3 billion due to billed volume growing by four percent and average effective tariff inching up by two percent.
Net income contributions from DMCI Homes and Maynilad dropped 46 percent and 19 percent respectively with both firms contributing combined earnings of P1.9 billion.
DMCI Holdings Chairman and President Isidro Consunji said the profitability of the company declined sharply in the business areas of DMCI Homes, DMCI Mining and Maynilad.
Double digit growth in the energy and construction businesses were also highlighted making contributions to the income performance for 2016 to DMCI Holdings.
The diversified engineering conglomerate DMCI Holdings also reported 49 percent jump in earnings at P938 million in 2016 from P628 million in 2915 collected from its construction segment D.M. Consunji Inc.
RIZA LOZADA