DMCI Holdings, Inc. Q32024 Earnings up 3% to P4.0B; 9M24 Net Income Declines 23% to P15.1B

Diversified engineering conglomerate DMCI Holdings reported a net income of P4.0 billion for the third quarter, marking a 3% rise from P3.9 billion in the previous year.

The increase was driven by stronger contributions from the water utility, power generation, construction, and nickel businesses, mitigating the impact of weaker results from coal mining and real estate.

Excluding non-recurring items, core net income also grew by 3%, from P3.9 billion to P4.0 billion.

"Each of our businesses has been affected differently by the new normal in an increasingly complex environment. We are working hard to strengthen our group's ecosystem, enhance operational efficiency to address macroeconomic challenges and weaker commodity prices, and effectively protect our margins," said DMCI Holdings Chairman and President Isidro A. Consunji.

From January to September, reported net income fell by 23% from P19.6 billion to P15.1 billion, attributable to weaker contributions from the integrated energy, real estate, and nickel businesses. Stronger contributions from the water utility, off-grid power generation, and construction segments partially offset the decline.

The group's nine-month bottom line remains 62% higher than the pre-pandemic level of P9.3 billion (9M 2019) and 12% above the pre-global energy crisis level of P13.5 billion (9M 2021).

Contribution Breakdown

In the third quarter, Semirara Mining and Power Corporation’s attributable net income contribution declined by 5% to P1.8 billion, from P1.9 billion last year, mainly due to weaker coal selling prices. Improved power generation contribution and higher coal shipments partially offset the impact of the stabilizing energy market.

Associate Maynilad Water Services contributed P921 million in net income, up 55% from P596 million, on the back of higher billed volume, increased average effective tariff and lower cash costs.

DMCI Homes reported a contribution of P768 million, down 36% from P1.2 billion due to lower real estate revenues. The decline was partially offset by increased contributions from joint venture construction revenues, rentals and forfeitures and finance income.

DMCI Power posted a 23% rise in contribution to P328 million, from P267 million last year, due to the uptick in energy sales and average selling prices, along with reduced cash costs.

D.M. Consunji, Inc. saw a 174% increase in contribution, from P47 million to P129 million, largely due to lower cash and noncash costs, as well as higher finance income.

DMCI Mining’s contribution recovered to P48 million, compared to a P154 million loss last year, owing to increased shipments and improved selling prices amid higher average nickel grade sold.