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DMCI optimistic this year, projects significant growth

Posted on January 02, 2012 09:37:02 PM [ BusinessWorld Online ]
BY CLIFF HARVEY C. VENZON
 
CONSUNJI-LED DMCI Holdings, Inc. expects to end 2011 with profits growing by a fifth, while the company is projecting a significant growth for 2012 as its power facility’s rehabilitation is set to be finished this year, an official has said.

“For 2011, we will probably hit 20% percent [growth],” Victor D. Limlingan, DMCI Holdings general manager told BusinessWorld late last week.

The new target is higher than the 10-15% Mr. Limlingan earlier projected in a chance interview in October. The revised projection, he explained, factors in the growth of DMCI’s construction, power and property businesses.

In 2010, the firm posted P7.9 billion consolidated net income, 76% higher than it earned in the previous year.

According to Mr. Limlingan, the firm’s power business did “very well.”

DMCI’s failure to get the Daang Hari project, on the other hand, was compensated for by its property business, which grew by around 20%.

The company decided to back off from the bidding of the government’s first public-private partnership project, saying that the endeavor would not be profitable for the company.

“From our point of view, assuming that we have bid, we will not earn,” he said.

Meanwhile, Mr. Limlingan said its power business would contribute significantly to the company’s growth this year.

“For the first semester of 2012, what is important for us is the rehabilitation of one of our power units [in Batangas],” he said.

DMCI’s SEM-Calaca Power Corp. plant has two 300-MW power units.

The company completed the rehabilitation of Unit 2 last year; the rehabilitation of Unit 1 began July last year and is ongoing.

“If we are successful [in the rehabilitation], we will be doubling the production for 2011,” he said. SEM-Calaca, along with other power-generating companies, last month sealed a supply deal agreement with power distributor Manila Electric Co. (Meralco).

Under the agreement, which has a validity of seven years, Meralco will source an initial capacity of 210 MW from the Calaca coal-fired power plant in Batangas. The capacity will be increased to 420 MW “upon the commercial operation of the plant’s Unit 1.”

The conglomerate’s net income attributable to its equity holders increased by 10.37% in the third quarter last year to P1.756 billion from P1.591 billion it had in 2010.

Meanwhile, DMCI Holdings, Inc.’s nine-month net income in 2011 hit P7.036 billion, 25.8% higher from P5.772 billion in year-ago levels.

Aside from construction, real estate, and power business, the firm has also interests in mining through its subsidiary Semirara Mining Corp., and water utility through Maynilad Water Services Inc., which is a consortium with Metro Pacific Investments Corp.

Shares of company rose by 2.66% to P42.40 per share.
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