DMCI Holdings 3Q net income down 34 pct as coal, construction businesses 'hit hardest'

ABS-CBN News

Posted at Nov 10 2020 06:28 PM

DMCI Holdings

MANILA - Consunji-led DMCI Holdings said on Tuesday its net income declined 34 percent in the third quarter dragged by mining and construction businesses.

Net income dropped to P1.9 billion in the third quarter from P2.8 billion a year ago.

"Among our businesses, Semirara and DMCI were hit hardest by the COVID-19 pandemic. We saw sharp drops in demand and prices for both coal and electricity because of the economic slowdown," said DMCI Holdings Chairman and President Isidro A. Consunji.

“Construction earnings deteriorated because of lower productivity and extraordinary expenses related to the coronavirus," he added.

Off-grid energy supplier DMCI Power and DMCI Mining both registered growth in incomes -- power enjoyed higher electricity sales, while mining saw strong China nickel demand and 41-percent jump in production amid Indonesian nickel ore export ban.

The rest of its units experienced declines with Semirara income down 64 percent, while DMCI Homes and Maynilad down 40 percent and 22 percent respectively. The construction unit posted a P97-million net loss. 

DMCI Holdings expected weak demand earlier in the year, and slashed its capital spending this year to preserve cash and maintain a healthy balance sheet.