DMCI Holdings Inc., the investment company of the Consunji family, said net income climbed 16 percent in 2017 to P14.8 billion from P12.7 billion in 2016, on higher profit contributions of coal energy, real estate, construction and nickel mining businesses.
The company said excluding a one-time gain of P111 million from the sale of a 10-percent stake in Subic Water and Sewerage Co. in 2016, core net income rose 17 percent year-on-year from P12.6 billion to P14.8 billion.
Consolidated revenues increased 18 percent last year to P81 billion from P68 billion in 2016.
“2017 was a challenging year for us but we were able to meet our earnings target of double-digit growth,” said DMCI chairman and president Isidro Consunji.
“For 2018, our financial performance will likely be more modest because of tapering electricity rates and the unresolved issues in our nickel mining and water businesses. But we see strong growth from our coal production and real estate segments,” he said.
Net income contributions from Semirara Mining and Power Corp., which accounted for 54 percent of the total, jumped 15 percent from P6.9 billion to P8 billion, led by a 20-percent increase in average coal prices and 21-percent rise in gross electric output.
Record real estate sales also resulted in a 47-percent surge in net earnings for DMCI Homes, from restated earnings of P2.4 billion in 2016 to P3.6 billion in 2017.
Reservation sales of DMCI Homes surpassed its P28-billion target to reach P41 billion last year.
Net income contributions from core business D.M. Consunji Inc. increased 11 percent from P938 million to slightly over P1 billion. Lower operating costs, favorable settlement of pending claims and earlier-than-expected completion of some minor projects accounted for the growth.
DMCI Mining Corp. returned to profitability in 2017, after a significant drop in operating costs and shipping 525,000 wet metric tons of nickel ore from its old inventory. From a net loss of P65 million in 2016, the nickel company recorded P113 million in net earnings the following year.
DMCI Power Corp. registered a 15-percent decline in net income to P359 million from P424 million due to the expiration of income tax holiday for its Masbate operations.
Net earnings share from affiliate Maynilad Water Services also went down by12 percent to P1.6 billion because of the delayed implementation of its tariff adjustment.