Conglomerate DMCI Holdings Inc. on Wednesday reported a 20-percent decline in 2023 net income on lower contributions from energy, nickel and construction subsidiaries.
DMCI said in a disclosure to the stock exchange its 2023 net income reached P24.9 billion, down from P31.1 billion in 2022, which was the second-highest ever for the company.
The company said the higher net income contributions from the real estate, off-grid energy and water utility businesses helped compensate for the decline contribution from energy, mining and construction units.
“We saw sharp corrections in commodity and energy prices in 2023, but because our businesses did very well in terms of production and sales volume, we managed to prevent a severe decline in our profitability,” said DMCI Holdings chairman and president Isidro Consunji.
Consolidated revenues in 2023 also dropped 14 percent to P122.8 billion from P142.6 billion the prior year due to normalizing coal, nickel and electricity prices, alongside a slowdown in construction and real estate activities, and an increase in revenue reversals stemming from the cancellation of real estate sales.
Average Newcastle and Indonesian coal prices dropped 64 percent and 26 percent, respectively, while the Philippine freight-on-board nickel price (for 1.30 percent nickel) fell by 30 percent.
DMCI said the average effective spot settlement price for all grids also declined by 18 percent.
It said that as a result, income contribution from Semirara Mining and Power Corp. fell 30 percent to P15.8 billion from P22.7 billion, on the combined effect of all-time high coal shipments and electricity sales amid stabilizing prices.
DMCI Homes contributed P4.6 billion to core earnings, a 2-percent uptick from P4.5 billion because of better selling prices and higher income from rental and forfeiture fees.
Affiliate Maynilad Water Services Inc. contributed P2.1 billion, a 42-percent improvement from P1.5 billion on account of higher water production, billed volume and adjusted tariff.
Meanwhile income contribution from DMCI Power improved by 29 percent year-on-year to P959 million on increased gross generation and electricity dispatch.
Construction unit D.M. Consunji, Inc. also showed a 2-percent drop in net income to P573 million on lower project accomplishments and fewer ongoing projects, while DMCI Mining contribution plunged by 49 percent to P655 million on lower nickel prices and higher shipping costs.
DMCI Holdings’ consolidated net income swelled by 36 percent to P4.7 billion in the fourth quarter from P3.5 billion a year earlier on higher revenues and better profit margins. Consolidated revenues also increased 8 percent to P30.4 billion from P28.3 billion on higher coal exports.