DMCI Holdings, Inc. Reported a PHP 24.9 Billion Net Income in 2023, down 20%

Diversified engineering conglomerate DMCI Holdings, Inc. recorded a consolidated net income of P24.9 billion in 2023, down 20% from P31.1 billion the previous year and the company's second-highest ever.

Higher net income contributions from the real estate, off-grid energy, and water utility businesses offset reduced contributions from the integrated energy, nickel, and construction divisions.

“We saw sharp corrections in commodity and energy prices in 2023 but because our businesses did very well in terms of production and sales volume, we managed to prevent a severe decline in our profitability,” said DMCI Holdings chairman and president Isidro A. Consunji.
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The average Newcastle and Indonesian Coal Index 4 prices plummeted by 64% and 26%, respectively, while the Philippine Freight on Board nickel price (for 1.30% Ni) declined by 30%. The average effective spot settlement price (ESSP) for all grids in the Philippines fell by double digits, reaching 18%.
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Consolidated revenues fell 14% to P122.8 billion in 2023, down from P142.6 billion the previous year, due to normalizing coal, nickel, and electricity prices, as well as a slowdown in construction and real estate activities and an increase in revenue reversals caused by cancelled real estate sales.

Excluding a 2022 non-recurring loss of P93 million, primarily due to the asset write-down of two gas turbines under Southwest Luzon Power Generation Corporation, and a net non-recurring gain of P46 million, primarily due to DMCI Homes' gain on land sale in 2023, consolidated core net income fell 20% from P31.2 billion to P24.7 billion.

DMCI Holdings reported a consolidated net income of P4.7 billion in the fourth quarter, up 36% from P3.5 billion the previous year, owing to stronger revenues and better profit margins. Consolidated core earnings increased by 30%, from P3.6 billion to P4.6 billion.

Consolidated revenues increased by 8% from P28.3 billion to P30.4 billion due to increased coal exports, while the EBITDA margin increased from 29% to 32% due to lower operating costs and higher other income from DMCI Homes and SEM-Calaca Power Corporation.

Semirara Mining and Power Corporation's contribution fell by 30%, from P22.7 billion to P15.8 billion, as a result of record coal shipments and electricity sales as prices stabilized.

DMCI Homes generated P4.6 billion in core earnings, a 2% increase over P4.5 billion due to increased selling prices and income from rental and forfeiture fees.
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Affiliate Maynilad provided P2.1 billion, up 42% from P1.5 billion due to increased water production, billed volume, and a changed tariff.

The contribution from DMCI Power increased by 29%, from P742 million to P959 million, due to higher gross generation and power dispatch.

D.M. Consunji, Inc.'s net income fell 2% from P587 million to P573 million due to decreased project accomplishments on fewer active projects.
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DMCI Mining's contribution decreased by 49% from P1.3 billion to P655 million due to reduced nickel prices and increased shipping expenses.