DMCI Holdings, Inc.

...not bad for DMC...not bad Smile

DMCI profit hits P5 billion in Q2

DMCI Holdings, Inc. registered a net income of P5 billion in the second quarter, up by nearly 39% compared with the P3.6 billion posted a year ago, with most of its business segments performing well except for the power business.

Consolidated revenues during the quarter hit P23.9 billion, higher by 31% from P18.3 billion in the same three months last year, the Consunji-led firm said on Tuesday.

In the first half, net income reached P9.2 billion, an increase of 21% compared with the P7.6 billion in the same period last year due to the higher contributions from the firm’s coal and nickel mining, real estate, construction and water businesses.

“All of our businesses fared well except for our power subsidiaries,” said DMCI Holdings Chairman and President Isidro A. Consunji said in a statement.

He said the unplanned and prolonged outages of Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp. “cut into the profitability” of parent firm Semirara Mining and Power Corp. (SMPC).

Consolidated revenues during the semester reached P44.2 billion, up 19% from P37.1 billion during the same period last year.

“DMCI Power [Corp.] continues to implement a lower provisional tariff for its Aborlan power plant because its motion for recomputation is still under review with the Energy Regulatory Commission (ERC),” Mr. Consunji said.

DMCI Holdings’ core net income during the first half rose by 10% to P8.6 billion from P7.8 billion a year ago. It excluded the P715-million one-time gain of the sale of an undeveloped lot by DMCI Homes, Inc. and a P69-million one-off refinancing cost of Maynilad Water Services, Inc.

For the second quarter alone, the firm’s core net income rose by 16% to P4.2 billion from P3.6 billion.

SMPC recorded a 3% rise in net income contributions to P4.6 billion from P4.5 billion because of higher coal sales and coal prices.

Excluding the one-time gain, DMCI Homes contributed P1.7 billion in earnings, up 7% from P1.6 billion in the previous year. The improvement was attributed to a 12% growth in revenues and a 4% rise in reservation sales.

Mr. Consunji identified the non-recurring gain as the sale of a 1.9-hectare property near the LRT Balintawak station. He said the asset was sold at a price more than three times the acquisition cost.

The net income contributions of affiliate Maynilad went up by 16% to slightly more than P1 billion from P877 million due to a 3.4% increase in billed volume and a 2.8% inflationary tariff adjustment.

Construction arm D.M. Consunji, Inc. booked a 36% increase in net income share to P676 million from P497 million after the “higher accomplishment in building projects and the realization of variation orders from projects nearing completion.”

Off-grid energy supplier DMCI Power contributed P214 million in net earnings, up 6% from P228 million last year.

“The decrease mainly resulted from the lower-than-expected provisional tariff granted to its Aborlan power plant in Palawan,” the company said.

Attributable net income from DMCI Mining Corp. jumped 309% to P221 million from P54 million, “fueled by higher shipments from the old stockpile and shipment of more high-grade nickel ore,” the holding firm said.

Other income during the first half more than doubled to P88 million from P27 million due to higher interest income.


...this is not good news Sad

DMCI Mining expects no shipments of nickel in the second half of 2018

DMCI Mining Corp. said nickel shipments went up by 88% in the first half of 2018, but expects no shipments to be made in the second semester due to the shutdown of its Zambales operations as well as the depletion of its stockpile in Palawan.

The Consunji-led miner said in a statement that it shipped 482,762 wet metric tons (WMT) from January to June, higher than the 257,120 WMT it shipped in the same period a year ago.

The average selling price per metric ton of nickel stood at $39, 10% higher than its price of $35 in the same period a year ago. Average nickel grade also improved by 11% to 1.73%. In the second quarter alone, average nickel grade rose by eight percent to 1.75%.

“We had a really good first semester. Our subsidiaries were able to ship more high-grade nickel ore at a higher selling price,” DMCI Mining President Cesar F. Simbulan, Jr. was quoted as saying in a statement.

Around 430,000 WMT came from the old stockpile of Berong Nickel Corp. (BNC) in Palawan, while the remaining 50,000 WMT were sourced from Zambales Diversified Metals Corp. (ZDMC).

BNC shipped 327,000 WMT in the second quarter alone, while ZMDC had no shipments since it has yet the secure its port permit.

The positive performance for the first semester came amid the closure of ZDMC and a suspension order against BNC, following the government’s crackdown on mining firms last year. The Department of Environment and Natural Resources (DENR) however allowed suspended mining companies to ship out their old stockpile to limit the possible accumulation of silt in nearby bodies of water.

DMCI Mining is expecting a slower performance in the second half, given the continued suspension of its mining operations.

“We project no shipments in the second half. In Zambales, we have a problem with existing suspension. In Palawan, mas madali mag-ship pero weather lang ang hinihintay (it’s easier to ship but we have to wait for good weather), it’s not cooperative,” DMCI Mining Chief Finance Officer Aldric G. Borlaza said in a press briefing in Makati City on Monday.

“Di ka pwede mag-mine ng bago (You cannot start a new mine), you can only sell existing stockpile. Once you’ve declared it before (the suspension), once verified before the DENR, you are allowed to ship,” he added.

Mr. Borlaza said they currently have around 500,000 WMT in BNC, which could last until the second quarter of 2019. The company is eyeing two shipments a month, with 50,000 WMT for each shipment.

Meanwhile, the company has around 250,000 MT of mid-grade nickel from ZMDC, but this will only be shipped depending on demand from the market.

Asked whether the company has talked with DENR regarding the suspension order against mining firms, Mr. Borlaza said there are ongoing discussions but the department has yet to decide whether to reverse the existing order.

DMCI Minings saw its net income soar by 978% to P248 million in the second quarter of 2018. This pushed earnings for the first half by 731% to P316 million, amid a 144% increase in revenues to P978 million for the period.


...nice project for students...iba na talaga ang panahon ngayon, mapepera na mga pamilya di katulad ng panahon namin noon

DMCI to pour P49 billion into socialized housing, students’ high-rise dorms

CONGLOMERATE DMCI Holdings Inc. may start its foray into socialized housing and a condominium and dormitory project, which it is targeting for students.

Officials, however, said they are not expecting to earn from the socialized housing project, which it may sell for less than half a million pesos, a government-mandated value for each unit.

“But we want our people to benefit from our efforts,” said Isidro A. Consunji, the company’s chairman and president.

“We did a survey and we found out that most of our people in Calaca do not have houses. So we decided to start there,” he said.

DMCI operates the 600-megawatt thermal coal power plant in Calaca, Batangas.

Consunji said they are already talking to a subcontractor to carry out the project, which it plans to copy in other parts of the country.

“Whether it’s a big project or a small project, it needs to have very good people so initially, we wanted it to have a flushing toilet but there’s a price limit so there are challenges involved. But even if it’s socialized housing, it should be good,” he said.

Its housing unit DMCI Homes will carry out the project. Alfredo Austria, DMCI Homes president, said it may commence construction next year since it is still securing permits.

Austria said the company is also pursuing a dormitory project, involving the construction of a 40-story building, three-tower project in Davao and another one in Vito Cruz.

“We are still asking for approval for the height of the building,” he said, adding it is mostly geared for students.

The project will be launched within the year and involved units between 12 square meters (sq m) and 40 sq m.

DMCI earlier said it will launch eight high-rise projects in Davao, Las Piñas, Manila, Parañaque, Pasay, Pasig and Quezon City.

The projects will have an expected sales value of P49 billion.


DMCI Power sales jump 20% in 2nd quarter

SALES OF DMCI Power Corp. (DPC) rose by a fifth in the second quarter of 2018, driven by the demand for electricity in Palawan, Mindoro, and Masbate.

The power unit of listed conglomerate DMCI Holdings, Inc. said consolidated sales reached 79.93 gigawatt hours (GWh) in the April to June period, 20% higher than the 66.57 GWh it sold in the same period a year ago.

This brought DPC’s sales volume in the first half to 142.91 GWh, 19% higher than the 120.42 GWh seen in the first semester of 2017. The bulk of sales came from Palawan, accounting for 43%, while Masbate had 37% and Mindoro had 20%.

“The dramatic growth was principally due to the National Power Corporation, local government units and electric cooperatives, and their collective effort to address line issues in the missionary areas,” DPC President Nestor D. Dadivas was quoted as saying in a statement.

DPC sold a total of 61.57 GWh to Palawan Electric Cooperative (PALECO) during the first half, 30% higher than what it delivered in the same period a year ago. The company attributed the increase to Palawan’s growing tourism industry.

Energy sales to Masbate Electric Cooperative (MASELCO) also went up 11% to 53.10 GWh during the first half, as the company noted the expansion of commercial businesses in the area.

In Mindoro, 28.24 GWh were sold to Oriental Mindoro Electric Cooperative, 13% higher year-on-year. The company was able to maximize its plant capacity following Mindoro’s rehabilitation of its 69Kv transmission lines.

“With their continued rehabilitation of distribution lines, improvement of transmission lines and prioritization of new interconnection facilities, DPC can supply more electricity to more communities in the next 12-48 months,” the company said.

Aside from MASELCO, ORMECO, and PALECO, DPC also sells electricity to Sultan Kudarat Electric Cooperative. Founded in 2006, DPC provides electricity to areas not connected to the main transmission grid.

Earlier this year, DPC said it will be spending P160 million to acquire seven new diesel generating sets for its Masbate and Palawan operations. The new units will have a total capacity of 11.2 megawatts, raising its generation capacity in the two missionary areas to 90 MW, 14% higher than what it had last year. 

ang lakas neto, sana umabot ng 14 pesos

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