DMCI Holdings net income reached P12.1 billion in 2016

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DMCI Holdings Inc. on Monday said its off-grid energy unit DMCI Power Corp. posted double-digit sales growth in 2016, with volume reaching 240 gigawatt-hours (GWh), from 212 GWh in 2015.

Higher power demand and dispatch across all cooperatives accounted for the 14-percent improvement, the company said. Its higher sales resulted in a net-income increase of 11 percent to P424 million, from P382 million the previous year.

DMCI Holdings, meanwhile, recorded a flat core net-income growth in 2016 at P12.1 billion, from P12.3 billion the previous year, due to lower contributions from its real-estate, nickel-mining and water businesses.

“The double-digit growth of our energy and construction businesses was offset by the sharp drop in profitability of DMCI Homes, DMCI Mining and Maynilad,” DMCI Holdings Chairman and President Isidro Consunji said. Palawan registered the highest sales growth at 17 percent, rising to 91.27 GWh, from 78 GWh. The rise was due to the increased economic activity in the province and the installation of a satellite plant in Brooke’s Point.

Power sales to Oriental Mindoro Electric Cooperative grew 11 percent, from 46.24 GWh to 51.76 GWh, due mainly to the full-year operations of its 15-megawatt bunker-fired diesel power plant in Calapan City.

Dispatch to Masbate Electric Cooperative increased 11 percent, from 85.81 GWh to 94.91 GWh, following a 5-percent uptick in the cooperative’s line connections.

“We are pleased to serve the growing electricity demand in our service areas. With our continued partnership with local cooperatives, we can deliver reliable electricity to even more off-grid communities,” company President Nestor Dadivas said.

DMCI Power has long-term power-supply agreements with Palawan Electric Cooperative, Ormeco and Maselco.  It is one of the biggest off-grid power producers in the Philippines.

Semirara Mining and Power Corp. hit an all-time-high consolidated net income of P12 billion in 2016 due to higher coal and power sales. This resulted in a 43-percent, year-on-year improvement in income contribution to DMCI Holdings, from P4.8 billion to P6.9 billion.

Net income contributions from DMCI Homes and Maynilad fell 46 percent and 19 percent, respectively. Both firms contributed P1.9 billion.

The deferred recognition of revenues from its completed high-rise projects led to the earnings slump of DMCI Homes while the expiration of Maynilad’s income tax holiday in December 2015 pulled down the water company’s profitability.

Sales and reservation numbers of DMCI Homes last year hit a historic high of 8,236 units, a 55- percent increase from 5,325 units during the previous year.

Construction firm DM Consunji Inc. made a strong comeback in 2016, earning P938 million or 49 percent more than the P628 million it earned the previous year due to the strong performance of its construction segments.