By Zinnia B. Dela Peña (The Philippine Star) Updated August 24, 2009 12:00 AM
MANILA, Philippines - DMCI Holdings Inc., the investment holding firm of the Consunji family, reported a more than three-fold jump in its first half net profit this year on strong growth in its water, coal and construction units.
In a financial report filed with securities regulators, DMCI said its net earnings amounted to P2.16 billion from January to June 2009 compared with only P597.59 million a year earlier. Revenues increased 12 percent to P12.02 billion.
In the second quarter alone, DMCI’s net income amounted to P1.38 billion, 283 percent higher than the P360.51 million recorded the same period a year ago. Revenues went up six percent to P6.06 billion from P5.71 billion.
DMCI said net contributions from the water business recognized a huge growth from a negative contribution of P257 million last year to an income of P1.1 billion in 2009, due mainly to operational progress including some financial reporting items.
DMCI owns 49 percent of Maynilad Water Services Inc., a private water concessionaire serving the western part of Metro Manila.
Maynilad reported a 12 percent rise in billed volumes, despite a slight dip in water supply. As a result, non-revenue water (NRW) slid seven percent as it reached an average six-month NRW of 60.9 percent in 2009 from 65.5 percent a year earlier.
The group’s coal business, operated by 58.8 percent-owned Semirara Mining Corp. reported a 62.6 percent growth in net profit to P720.68 million from P443.28 million. Revenues rose 33.7 percent to P6.35 billion, helped by price adjustments.
DMCI said coal mining contributions would have been higher if not for the substantial increase in government royalties as a result of higher revenues.
DMCI’s real estate business, led by wholly-owned unit DMCI Project Developers Inc., chipped in P299 million or an improvement of six percent over the previous level. It only recognizes sales when the unit is fully complete and 20 percent of the contract price has been collected. Revenues inched up two percent to P1.87 billion, selling 679 residential and 212 parking units compared to last year’s 787 residential and 229 parking units.
The general construction business unit, reported under wholly-owned flagship construction company, D.M. Consunji Inc. (DMCI), contributed P233 million to total net income or an increase of 36 percent from P171 million.
As 2008 projects reached final completion stages, revenues from newly awarded major contracts (worth P16 billion) started to factor in their realized work causing the 15 percent growth in construction revenues. Building revenues came mainly from the Raffles Hotel and the 168 Residences projects contributing a total P575 billion or 23 percent of total DMCI construction revenues.
Infrastructure revenues coming from the Skyway Extension and the LRT 1 Extension projects combined for P997 million or 39 percent.
The company’s steel fabrication business under AG&P reported a 20.6 percent drop in net contributions from P111 million to P92 million. Revenues fell 19.7 percent as its fabrication, commissioning and manpower contracts for the New Caledonia project is nearing completion stage.