DMCI Holdings, Inc. Q2 2024 Profit Down 32% to P5.5 Billion; H1-2024 Net Income Drops 29% to P11.1 Billion

Diversified engineering conglomerate DMCI Holdings reported a net income of P5.5 billion for the second quarter, a 32% decline from P8.1 billion.

The drop was largely due to weaker performances from its integrated energy, real estate and nickel mining subsidiaries. Improved results from its water, off-grid power and construction businesses partially offset the downturn.

Excluding non-recurring items, core net income also fell by 32%, down to P5.5 billion from P8.1 billion.

“We are now in the new normal. Market prices and global supply chains have normalized, so our chall5.60enge is to strategically manage costs, optimize operational efficiency and capitalize on synergies across our business units,” said DMCI Holdings Chairman and President Isidro A. Consunji.

Quarter-over-quarter, consolidated earnings remained stable, dipping by 2% from P5.6 billion. Compared to the pre-pandemic level of P3.7 billion (Q2 2019), the group's bottom line was 49% higher.

For the first half of 2024, reported net income declined by 29% from P15.6 billion to P11.1 billion, primarily due to reduced contributions from the coal mining, on-grid power, real estate and construction subsidiaries, as well as a net loss in the nickel mining business. Stronger contributions from the water and off-grid segments partially mitigated these impacts.

Contribution Breakdown

In the second quarter, the net income contribution from Semirara Mining and Power Corporation declined by 41% to P3.4 billion from P5.8 billion last year, as the energy markets normalized. Higher coal and electricity sales volumes cushioned the impact of softer selling prices.

DMCI Homes contributed P737 million, down 43% from P1.3 billion, due to lower real estate revenues and higher operating expenses, which were partly offset by increased contributions from joint venture construction revenues, rentals and forfeitures.

Associate Maynilad Water Services posted a 54% surge in net income contribution, rising from P474 million to P732 million, driven by increased billed volume, higher average effective tariff and slower growth in cash, noncash and finance costs.
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DMCI Power made an all-time high contribution of P355 million, a 54% increase from P231 million last year, due to double-digit increases in power dispatch and lower direct costs from more affordable fuel use.

D.M. Consunji, Inc. saw its net income contribution soar by 73%, from P139 million to P240 million, primarily due to lower cash and noncash costs, reduced tax provisions and higher finance income.

Net of eliminating entries, DMCI Mining swung to a P43 million net loss from P250 million in income last year, as a result of weak market prices, reduced shipments and costs incurred at its Palawan mine.