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THE
Consunji-led DMCI Holdings Inc. reported a 73-percent
drop in net profit for the first half to P543 million
from P2 billion a year ago as its water business did not
deliver good numbers during the period.
In a
report to the stock exchange Tuesday, DMCI said its
investment in the water sector, via a consortium with
Metro Pacific Investments Corp., reported a significant
drop in net contributions for the period from a
P1.4-billion income to a loss of P234 million.
“Extraordinary high income from the negative goodwill
booked last year coupled with nonoperating consortium
level costs recorded this year led to the big
discrepancy in the bottomline figures,” DMCI said.
These
consortium level costs include foreign exchange losses
from the US dollar-denominated loans obtained to acquire
Maynilad Water Services Inc. worth P695 million;
amortization of the negative goodwill amounting to P302
million; and net interest expense from the same US
dollar-denominated loans costing P347 million.
“The
consortium expects the net interest expense to reduce
significantly when the US dollar loans are converted and
additional capital infusion has been finalized within
the year,” it said.
On its
own, Maynilad’s operations posted a net income of P1
billion for the first half of the year, up 26 percent
from P802-million reported last year.
Despite
the water unit’s setback, DMCI’s interests in its
construction, real estate and coal mining concerns were
encouraging.
DMCI
Project Developers Inc., which operates under the brand
DMCI Homes, booked 23-percent and 8-percent increase in
revenues and net income, respectively, at the end of
first half.
An
effective higher selling price coming from the existing
projects provided most of the rise in topline with
higher costs limiting the bottomline improvement.
Notable sales came from existing projects like Manors at
Celebrity Place, Raya Gardens, and Rosewood Pointe and
new projects Alta Vista Boracay, Dansalan Gardens, and
Riverfront Residences.
D.M.
Consunji Inc., the group’s construction arm, reported a
24-percent jump in net profit. This was due to the
collection of previously incurred change orders,
increased works from outside contracts and construction
from the water business.
The
company’s coal mining business, operated by 55
percent-owned publicly listed Semirara Mining Corp.,
reported flat results. Despite this, the increased coal
deliveries from the local markets and offshore coal
customers have driven a significant 67 percent increase
in coal mining revenues. Its net income as of end June
amounted to P443.3 million. |
