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DMCI
Holdings Inc. of the Consunji group ended the third
quarter with a loss of P322.5 million from a net profit
of P185.8 million a year ago as it decided to reverse
some extraordinary and nonrecurring items in unit
Maynilad Water Services Inc.
The move
was to reflect a more recurring amount indicative of the
actual water business. Revenues, on the other hand, grew
to P3.5 billion from P2.04 billion last year.
In a
report to the stock exchange, DMCI Holdings stated that
since the water business is being accounted for under
the equity method, it will adopt a conservative
principle in the recognition of its equity in net
earnings from DMCI-MPIC Water Co. Inc., or DMWC, a joint
venture with Metro Pacific Investments Corp., which owns
84 percent of Maynilad.
“For the
third quarter, DMCI has reversed an amount of P957
million from its previously recorded equity
contributions from DMWC that included the negative good
will and other costs. The company believes that the
other costs of DMWC can be capitalized as part of its
investment and that the nonrecurring negative goodwill
needs to be deliberated fully first before final
recognition,” DMCI Holdings said.
DMCI’s
real-estate business, led by wholly owned DMCI Project
Developers, continued to experience record-high
operations during the quarter as extraordinary
real-estate sales from sustained housing demand,
improved selling and marketing activities were on an
uptrend.
And with
the successful turnover rate from existing projects like
East Ortigas Mansions and Mayfield Park Residences, the
company has been actively launching new projects like
Raya Gardens Condominium, Rosewood Pointe and The Manors
at Celebrity Place, which contributed P986 million in
combined revenues from January to September this year.
“Overseas Filipino Workers [OFWs] account for around 30
percent of all sales. We even estimate that around 50
percent of the local purchases are being funded by OFW
money and most of these OFWs are located in Italy,
London, Vienna, Hong Kong and Dubai. With the purchasing
power, we are keen on pursuing the OFW market as an
avenue towards real-estate sales expansion,” DMCI said.
Construction income, booked under unit D.M. Consunji
Inc., reached P344 million for the nine-month period and
P205 million for the quarter that ended September 30,
up 20 percent and 28 percent, respectively due to
increased construction activity from outside contracts
and jobs provided by the water business.
Initial
works on new projects, Shangrila Boracay and Robinson
Cybergate Tower, with total contract amount of P1.5
billion, added P624 million in period revenues, almost
half of which was booked in the third quarter.
In
addition, DMCI was able to get almost P518 million from
Maynilad as of the third quarter, which already
contributed P229 million of recognized revenues, a
significant portion of which was also recorded in the
last quarter. Back-log work now shows P2.1 billion as of
the 3rd quarter.
Coal
mining business, which is being handled by subsidiary
Semirara Mining Corp. also reported promising operations
for the period and third quarter of 2007.
Coal
production was 44 percent better with coal sales
reaching record levels. Coal deliveries for the
nine-month period already tallied 2.551 million metric
tons (MT) from 1.6 million MT for the same period last
year.
Third
quarter sales reached 1 million MT, the highest so far
experienced by Semirara for a single quarter.
“Increase in take up from domestic users and deliveries
to the export market proved valuable to the growth in
coal sales. Coal revenues were up 26 percent but despite
this, coal income for the period and quarter was down
marginally due to the significant coal price reduction
from the depreciation of the US dollar versus the peso
Moreover, the initial low penetrating prices for the
export markets further added to the unfavorable
reduction in total coal price,” DMCI said. |
