Conglomerate DMCI Holdings Inc. on Tuesday said its net income jumped almost five times to P9.5 billion in the first semester, from the P2 billion it reported last year.
The surge in net income was due to the rebound of its subsidiaries, Semirara Mining and Power Corp., DMCI Homes and DMCI Mining, the company said.
Excluding a nonrecurring gain of P1.2 billion this year relative to the remeasurement of deferred tax liabilities as a result of the CREATE law and the P586-million net loss mainly from sales cancellations for a real estate project last year, consolidated core net income surged threefold to P8.3 billion from P2.6 billion in the previous year.
“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,” DMCI Holdings Chairman and President Isidro A. Consunji said.
For the second quarter alone, DMCI Holdings recognized consolidated net earnings of P5.2 billion, three times higher than the previous year’s P1.4 billion. Excluding nonrecurring items, core net income grew by 166 percent to P4.2 billion, from P1.6 billion.
“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,” Consunji said.
Semirara Mining contributed P3.7 billion, a near threefold increase from P1.3 billion owing to its all-time high coal production in the first quarter, all-time high shipments in the second quarter, and the strong rebound in coal and electricity spot prices.
Contributions from DMCI Homes soared to P2.3 billion from a mere P38 million previously on higher construction accomplishments and recognition of down payment from new accounts.
DMCI Mining accounted for P818 million, a 345-percent improvement from P184 million on the back of higher production, average grade and shipment amid a booming nickel market. Affiliate Maynilad Water Services Inc. posted a 15-percent decline in contributions to P718 million from P847 million as quarantine measures led to a 3-percent drop in billed volume.
D.M. Consunji Inc., the construction arm, contributed P484 million, a fivefold increase compared to P92 million last year owing to higher construction accomplishments and minimal coronavirus-related expenses.
Contributions from DMCI Power grew 5 percent to P270 million from P256 million because of higher electricity sales to Masbate and Palawan.
Income from parent and others recovered to an income of P18 million from a net loss of P57 million on the absence of expenses related to the Covid-19 pandemic.