MANILA -- DMCI Holdings said Tuesday it will slash and defer capital spending this year to preserve cash and keep its balance sheet 'healthy', as the pandemic slows economic activities.

Consolidated capital expenditures will be reduced by 52 percent to P19.4 billion, it said. DMCI originally earmarked P40.4 billion as capex at the start of the year.

“We expect weak demand and low selling prices to affect most of our businesses. DMCI [D.M. Consunji, Inc.] could show more resilience, if supported by massive public spending and timely issuance of permits and rights-of-way,” said DMCI Holdings chairman and president, Isidro Consunji.

Its property unit, DMCI Homes will sustain the "deepest budget cut" as it plans to reduce capex to P14 billion from P31 billion. Land acquisitions will also be capped to P4 billion, a 79-percent drop from P19 billion, it added.

“At this stage of the pandemic, we cannot predict how the business environment will evolve but it will definitely take some time before our Company can rebound to its pre-pandemic income and dividend payout levels,” Consunji said.

The diversified engineering conglomerate, which has interests in construction, property, power generation, mining and water services, says it is debt-free at the parent level, giving it flexibility to tap credit and funding if needed.

DMCI Holdings, Inc posted a 78 percent decline in first-quarter earnings from P2.7 billion to P616 million, as all its businesses delivered weak performances during the period, it said.