DMCI Holdings sees single-digit profit growth in 2017
InterAksyon.com means BUSINESS
MANILA - Consunji-led engineering conglomerate DMCI Holdings Inc. targets a single-digit profit growth this year as it operates new mining sites and gears up to make available an expanded power plant.
DMCI Executive Vice President and Chief Finance Officer (CFO) Herbert Consunji told reporters all indications point to a “little better” growth in 2017, except nickel mining, after recording flat core net income last year at P12.1 billion.
Consunji expects its integrated energy firm Semirara Mining and Power Corporation (SMPC) contributing 58 percent in terms of net income this year from just 50-percent share in 2016.
“Semirara will increase its production. Hopefully, the prices will hold,” he said, noting Semirara will operate new mines with higher reserves in Molave and Narra in its Panian mine in Antique.
Consunji added SMPC is also awaiting the approval of the Energy Regulatory Commission (ERC) for its 700-megawatt coal-fired power plant in Calaca, Batangas right of way for the transmission lines.
The new power plant comprised the second phase expansion of the Calaca coal-fired plant facility.
“Hopefully, (that project can) come on stream,” he said.
Consunji expects the remaining 42 percent of this year’s projected profit coming from its property, construction and water businesses.
The conglomerate this year increased its capital spending by 42.5 percent to P56.98 billion in 2017 from last year’s P40 billion, mainly for the development of two mining sites and the launch of more residential projects.
Of the total, P46.54 billion will be spent for property unit DMCI Homes, P8.44 billion for SMPC, and P1.33 billion for off-grid supplier DMCI Power Corporation.
The remaining P570 million will go to construction company DM Consunii Inc. and P100 million for nickel miner DMCI Mining.
“We will spend more for Semirara because we are building up new areas. But the cost to produce will be much less because we will simply transfer the overburden in the nearby existing pits,” Consunji noted.
Meanwhile, DMCI Holdings recorded 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 were offset by the sharp drop in profitability of DMCI Homes, DMCI Mining and Maynilad,” said DMCI Holdings Chairman and President Isidro A. Consunji.