Business

Consunji holding firm profit plunges amid COVID outbreak

Diversified engineering conglomerate DMCI Holdings Inc. said its second quarter profit plunged 62% to P1.4 billion as most of its businesses felt the brunt of the hard lockdown.

This raised first half net profit to P2 billion, representing a 69 percent year-on-year decline. Core earnings slipped 61% to P2.6 billion.

DMCI Holdings chairman and president Isidro A. Consunji said subsidiaries Semirara Mining and Power Corp., DMCI Power, DMCI Mining and Maynilad remained profitable in the first two quarters but were severely hit by low market prices.

“Most of our businesses showed resilience during the lockdown period since they belong to essential industries like power, mining and water distribution,” said DMCI Holdings chairman and president Isidro A. Consunji.

Semirara contributed P1.3 billion to DMCI’s total core earnings , down 64% as coal sales and average selling price fell 27 percent and 21 percent, respectively. Its power segment also sustained sharp declines with electricity sales and average selling price falling 10 percent and 32 percent, respectively.

Property arm DMCI Homes chipped in P38 million, representing a 97 percent decrease as quarantine restrictions dragged down construction accomplishments and pulled down revenue.

D.M. Consunji’s core earnings contribution fell 79% to P92 million due to the 76-day lockdown and staggered workforce build-up which affected productivity and revenue recognition.

Off-grid energy supplier DMCI Power pumped in P256 million or an increase of 10% year on year due higher energy sales in Palawan and lower fuel costs.

Net income contributions from affiliate Maynilad decreased 24% to P847 million due mainly to the sharp drop in commercial and industrial sales volume during the lockdown. Higher depreciation and amortization for its capital expenditure program likewise contributed to the decline.

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