DMCI net profit falls 54% to P7.54 billion DMCI Holdings, Inc. reported that its attributable profit fell 54 percent to R7.54 billion in the first nine months of 2014 from the P16.39 billion earned in the same period last year. Based on its disclosure to the Philippine Stock Exchange, the firm’s net income dropped due to weaker results from its power and construction businesses, lower stake in its water business, and lack of one-time gains. DMCI said it posted R7.5 billion in consolidated core income for the first nine months of 2014, a 6 percent decline from the P8.0 billion reported in the same period last year. by James Loyola November 20, 2014 (updated) The drop in core income was attributable to the weakened operating results of the power and construction businesses. Maintenance contractor delays resulted in extended outages in the Calaca power units, exposing the power business to high Wholesale Electricity Spot Market (WESM) prices for its replacement power during the first half of the year. Meanwhile, earnings from the construction business were dragged down by cost overruns in its engineering, procurement, and construction (EPC) contract for a power plant, and the delayed implementation of major public infrastructure projects due to right-of-way and utility relocation issues. On the other hand, the mining businesses have rebounded well from last year and have shown remarkable growth in net income contributions due to a combined effect of higher sales volume and better average prices. In particular, the coal segment posted a 202 percent increase while the nickel segment reported an upsurge of 42 times. In spite of the growth in water operations this year, DMCI reported a 4 percent decrease in net earnings share from the water business as a result of reduced effective interest in Maynilad Water Services Inc. Semirara Mining and Power Corporation reported a 27 percent fall in net unaudited consolidated net income to P3.91 billion for the first nine months of 2014 from 5.37 billion in the same period last year. The firm said the decline is mainly due to the lower power generation during the first half and the loss incurred in the replacement power sourced from the spot market. The net contribution to the bottom line by the coal segment and the power segment (including pre-operating Southwest Luzon Power Generation Corporation) are P3.18 billion and P729.2 million, after elimination, respectively. The coal segment’s nine month net earnings, before elimination, increased by 141 percent to P3.81 billion from last year’s P1.58 billion mainly due to the 36 percent increase in volume sold and 20 percent decrease in cost of sales per metric ton.
Posted on: Thu, 20 Nov 2014 20:25:01 +0000
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