Metro Manila (CNN Philippines, March 8) — Consunji-led conglomerate DMCI Holdings Inc. recorded its highest core net income in 2021, hitting ₱17.4 billion, a 164% increase from the ₱6.6 billion posted a year earlier.
In a disclosure, the group attributed the solid financial performance to “surging commodity prices, recovering electricity rates and higher construction accomplishments” witnessed in the period.
In the last quarter of 2021 alone, DMCI Holdings reported a 145% increase in its core earnings to ₱5 billion against the previous ₱2 billion.
“Nearly all of our subsidiaries grew triple digits in 2021 because of higher productivity and what we believe is the start of a commodities supercycle,” said DMCI Holdings chairman and president Isidro Consunji.
A commodity supercycle refers to the sustained period when there is an escalation in prices of raw materials, such as coal and nickel.
According to the DMCI, Newcastle coal prices hit a record-high of $269.50 in October. LME nickel, on the other hand, booked a ten-year high of $22.145 in September.
Late last week, DMCI Mining told the local bourse that its earnings surged to ₱1.7 billion, marking its most profitable year yet, on the back of record nickel ore shipments. Its contributions to the parent company jumped 150% to ₱1.2 billion.
Semirara Mining and Power Corporation also contributed ₱9.2 billion following a 16% increase in coal sales.
However, Consunji said the market may experience “extreme volatility” due to the worsening tensions in Ukraine, as well as the economic sanctions imposed on Russia.
Meanwhile, the group’s other units also provided a lift to its bottom line.
Contributions from DMCI Power reached ₱580 million, 8% up from the previous ₱537 million on higher electricity sales and lower fuel costs.
DM Consunji, Inc. grew its contributions by a whopping 247%, from ₱109 million to ₱378 million on higher construction accomplishments.
Maynilad Water Services, Inc., however, contributed a flat ₱1.6 billion, which DMCI Holdings blamed on lower billed volume and average effective tariff because of COVID-19 restrictions.
