DMCI Q2 profit jumps 61% to P6.5B on record nickel, power earnings

Isidro Consunji 

DMCI chair, president, and CEO 

Insider Spotlight

• Record nickel mining, stronger power earnings and a cement turnaround drove DMCI’s 61 percent jump in second-quarter profit.
• DMCI Mining delivered record earnings as the Long Point mine completed its first full quarter, expanding operations to three active mines.
• Concreat nearly broke even, while Semirara’s record power performance more than offset weaker coal earnings.

DMCI Holdings posted a 61 percent jump in second-quarter earnings as nearly every major business contributed, led by record performances from its nickel mining and power units and a sharp turnaround in cement.

The Consunji-led conglomerate earned P6.5 billion in the April-to-June period, up from P4 billion a year earlier, bringing first-half net income to P11.4 billion, up 26 percent. 

Higher contributions from integrated energy, nickel mining, real estate, off-grid power, construction and cement more than offset a lower share of earnings from Maynilad.

Record contributors

DMCI Mining generated a record P1.3 billion in quarterly earnings, nearly four times the P344 million recorded a year earlier, as the Long Point mine completed its first full quarter of operations, increasing the company’s active mines from two to three.

Semirara Mining and Power contributed P2.7 billion, up 17 percent, as record power earnings more than offset weaker coal results. At the operating level, power accounted for 96 percent of earnings during the quarter, underscoring the growing contribution of the business.

DMCI Homes increased net income 49 percent to P1 billion, while DMCI Power posted a record P406 million following capacity additions in Masbate and Antique.

Cement turnaround

Concreat came close to breaking even after cutting its attributable net loss to just P4 million from P682 million a year earlier, helped by higher cement sales volumes, stronger selling prices and continued operational improvements.

Construction arm D.M. Consunji also improved its contribution to P195 million from P18 million, while Maynilad’s attributable income fell 17 percent to P810 million following the water utility’s initial public offering, which reduced DMCI Holdings’ effective ownership.

The broad-based improvement across its businesses helped offset the weaker contribution from Maynilad, allowing the diversified group to post one of its strongest quarterly earnings performances in recent years.

—Edited by Miguel R. Camus