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DMCI’s profit soars 134% to P13.5b

By Jenniffer B. Austria | Posted on Aug. 19, 2013 at 12:02am | 
DMCI Holdings Inc., owned by the family of construction tycoon David Consunji, said net income in the first six months of the year jumped 134 percent to P13.5 billion from P5.77 billion, year-on-year, buoyed by the one-time gain from the partial sale of its stake in the water business.
The company booked P8.35 billion in profit from the sale of its 16 percent stake in Maynilad Water Services Inc. to Marubeni Corp. of Japan. The sale reduced the company’s holdings in Maynilad to 25.24 percent.
DMCI said in a filing with the Philippine Stock Exchange that first-half consolidated revenues declined 3 percent to P26.5 billion from P27.4 billion a year ago, while core net income fell 11 percent to P5.1 billion. It said a decline in commodity prices resulted in lower sales from its coal and nickel mining activities.
But DMCI said domestic-oriented businesses showed more resilience and registered strong growth in the first half of the year.
Net income contribution of the group’s power business soared 176 percent in the first six months of the year to P1.91 billion from P693 million a year ago, with the completion of the rehabilitation of the Calaca coal power plants in Batangas province.
The profit contribution of the real estate unit increased 9 percent to P1.27 billion from P1.17 billion in the first six months of 2012, as reservation sales climbed 8 percent to P10.2 billion from P9.4 billion in 2012.
The company’s construction business posted a 12-percent increase in net income contribution to P675 million from P601 million a year ago, as order book reached P16.3 billion as of end-June.
DMCI was recently awarded the construction of the P10.45-billion NAIA Expressway and the MRT 7 railroad projects.
Net income contribution from the coal and nickel mining activities, meanwhile,  declined 84 percent and 113 percent, respectively, due to lower commodity prices in the world market.
The company also reported lower net income contribution from the water business due to the reduced interest in Maynilad.
DMCI president Isidro Consunji earlier said he expects core net income to slightly dip this year due to lower revenue contribution from water, nickel and coal ventures, while sales are expected to grow by a single digit on higher revenues from construction and real estate units.

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