2009 NEWS » Water, nonproperty...      
Water, nonproperty units boost DMCI 9-month profit

Companies Written by Miguel Camus / Reporter Sunday, 22 November 2009 20:13


THE holding firm for the Consunji family’s primary business assets more than doubled profits for first nine months of the year, buoyed by its water company alongside subsidiaries in construction, manufacturing and mining which offset the slowdown in its property segment.

In a filing to the stock exchange, listed DMCI Holdings Inc. said net income rose over 128 percent to P3.2 billion from the comparative period in 2008.

The increase in income was mainly on the back of stronger earnings from its 44.59-percent stake in west zone water concessionaire Maynilad Water Services Inc., which it operates through a consortium with Pangilinan-led Metro Pacific Investments Corp.

For the January-to-September period, DMCI Holding’s earnings from Maynilad stood at P1.42 billion, a reversal from the P62-million loss during the same period last year.

Maynilad’s water and sewer revenues for the period grew 29 percent to P7.4 billion this year. The company credited the gain to higher tariffs from rate rebasing and better operating efficiencies.

Meanwhile, the company’s construction business contributed P587 million during the period, higher by 47 percent from last year, boosted by flagship company D.M. Consunji Inc. and steel fabrication subsidiary Atlantic Gulf and Pacific Co. of Manila Inc. (AG&P).

The parent firm said D.M. Consunji Inc.’s net contributions rose 36 percent to P443 million while construction revenues rose more than a quarter to P4.5 billion. Building revenues meanwhile, came mainly from the Raffles Hotel in Makati, 168 Residences in Binondo, Manila and Moldex Grand Tower in Manila contributing P1 billion.

Infrastructure revenues was led by the Skyway Extension project with P1.25 billion, while the Light Rail Transit works accounted for P568 million and the Maynilad service contributing P751 million.

AG&P, said to be the oldest construction firm in the country, doubled net income to P144 million in the first nine months of the year. For the third quarter alone, revenues of the steel manufacturing firm rose 93 percent, as projects were delayed earlier due to high steel prices.

Last year, DMCI Holdings was looking to sell AG&P but due to the current economic environment, this did not materialize. As a result, the company has decided to fully support AG&P, with the hopes to renew and improve its business to become a fully contributing subsidiary.

Property developer DMCI Project Developers Inc., under the brand name DMCI Homes, saw a 35-percent drop in net contributions to P483 million, as sales recognition of units declined.

The firm recognizes real-estate revenues when the unit is fully complete and the down payment of 20 percent.

Revenues from new projects: Royal Palm Residences in Taguig, Tivoli Gardens in Mandaluyong, and existing projects: Dansalan, Raya Gardens, couldn’t make up for the drop in recognized revenues from existing projects: Rosewood Park and Bonifacio Heights.

The coal mining business, operated by now 58.8 percent owned, publicly listed Semirara Mining Corp. reported a 34 percent improvement in net income for the first three quarters to P766 million compared to the same period in 2008. Sales volume was up by to 3.4 million metric tons in 2009, as coal exports reached new highs.

The company said coal prices slightly improved by 16 percent despite the jump in composite domestic prices, which rose by a third, while export prices were flat from last year. As a result, coal revenues for the period were up by 43 percent to P9.2 billion this year.

Shares of DMCI Holdings rose 1.05 percent to end Friday’s session at P9.60 each.



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