DMCI Holdings, Inc. (DMC) on Thursday reported a 34% drop in its fourth-quarter core net income to P2.1 billion as the lockdown measures last year hit the construction industry.
In contrast, consolidated quarterly earnings jumped 59% to P1.9 billion with “the absence of a one-time goodwill impairment loss,” the Consunji-led holding firm said in a press release.
“The community quarantines hit our construction productivity, while weak market conditions dragged the sales performance of most of our businesses,” DMCI Holdings Chairman and President Isidro A. Consunji said.
“DMCI Mining was able to beat the downtrend because of strong nickel demand from China amid the Indonesian nickel ore export ban. DMCI Power posted higher sales volume, but its revenues fell due to the high base effect of the retroactive tariff adjustment for its Aborlan plant in 2019,” Mr. Consunji added.
For full-year 2020, consolidated net income fell by 44% to P5.9 billion, which the firm attributed largely to the strict quarantine restrictions and the economic impact of the pandemic.
Excluding non-recurring items, core income last year decreased by 47% to P6.6 billion. The figure excludes non-recurring losses of P1.9 billion mostly from a one-time noncash goodwill charge for its Zambales mining assets in 2019 and a P708-million sales cancellation in 2020.
Semirara Mining and Power Corp. recorded a 55% decline in core income contribution to P2 billion after a decrease in coal sales, and prices for coal and electricity.
DMCI Homes’ income contribution declined by 36% to P1.9 billion, which was attributed to the suspension of non-essential work in the first half. The half slowed down construction and lowered revenue recognition and unit turnovers. Higher construction costs added to the earnings decline.
Maynilad Water Services, Inc. accounted for P1.5 billion, down 13% due to lower commercial and industrial sales and higher depreciation and amortization.
DMCI Power’s income amounted to P611 million, a 12% drop due to the absence of a one-time retroactive adjustment in the non-fuel tariff of its business.
On the other hand, income share of DMCI Mining jumped 165% to P483 million after a rise in nickel shipments and average selling prices.
D.M. Consunji, Inc. contributed P109 million, down 88% due to lower construction productivity and accomplishments because of the pandemic.
On Thursday, DMCI Holdings shares at the stock exchange rose by 0.55% to close at P5.45 apiece. — K.C.G. Valmonte