DMCI Holdings posts record Q1 earnings: up 165% to P11.3B
by Philippine Resources - May 11, 2022
Photo credit: dmcihouse.net
Diversified engineering conglomerate DMCI Holdings, Inc. reported a 165-percent increase in first-quarter earnings from P4.3 billion to P11.3 billion, its highest ever for any given quarter.
Its record-setting performance was mainly driven by the robust operating results of its coal, nickel and power businesses amid rallying commodities and electricity spot prices.
Excluding a non-recurring gain of P179 million last year mainly from the deferred tax remeasurement impact of CREATE Act on Maynilad’s service concession asset and a P12 million gain on sale of land of DMCI Homes, consolidated core net income surged by 177 percent from P4.1 billion to P11.3 billion.
“Semirara exceeded our expectations while DMCI Mining and DMCI Power both grew double-digits,” said DMCI Holdings chairman and president Isidro A. Consunji.
“But our construction and real estate businesses are showing signs of slowdown because of knock-on effects of the pandemic and Russia-Ukraine war,” he added.
Net income contribution from Semirara Mining and Power Corporation (SMPC) skyrocketed by 544 percent from P1.3 billion to P8 billion on the back of record-high coal production, shipment and average selling prices, and further boosted by higher spot electricity sales at elevated prices.
DMCI Homes contributed P1.4 billion, a 7-percent decline from P1.5 billion owing to lower construction accomplishments, fewer new accounts that qualified for revenue recognition and higher sales cancellations.
Net income contribution from DMCI Mining grew 20 percent from P415 million to P499 million on higher nickel ore shipment and forex rates.
D.M. Consunji, Inc. recorded a 7-percent drop in net income contribution from P393 million to P367 million mainly due to the absence of a one-time related party transaction for a joint venture infrastructure project.
Maynilad contribution rose by 11 percent from P287 million to P319 million on lower personnel, utilities and interest expenses.
DMCI Power contributed P132 million, a 12-percent upturn from P118 million because of higher generation and sales across all its service areas.
Income from parent and others retraced by 38 percent from P13 million to P8 million on lower interest income.
Article courtesy of the Philippine Stock Exchange
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Philippine Resources - August 18, 2021
DMCI Mining shipments hit record high in H1
DMCI Mining shipped 1.24 million wet metric tons (WMT) of nickel ore from January to June, an all-time high for the company and 45 percent higher compared to the 853,000 MWT shipped during the same period last year. Of the total shipments, 718,000 WMT came from Berong Nickel Corporation (BNC) while Zambales Diversified Metals Corporation (ZDMC) contributed 522,000 WMT. “This is the first time that both our mining assets are operating at full capacity. We expect shipments to remain strong in the second half since we were able to extend Berong’s mine life from June until Q3 this year,” said DMCI Mining president Tulsi Das C. Reyes. Average nickel grade of the shipped nickel dropped from 1.37% to 1.39% while average selling price per metric ton rallied 57 percent from USD28 to USD44 owing to China’s surging stainless steel production, strong demand for electric vehicles and the continuing Indonesian nickel ore export ban. “The uptrend in nickel prices is likely to continue in the coming months because of production-consumption gaps. Major nickel producers are seeing lower output because of COVID-19 lockdowns and various operating issues but industrial manufacturing is still ramping up,” Reyes added. DMCI Mining revenues in the first half grew 123 percent from P1.2 billion to P2.7 billion. Including a nonrecurring income of P247 million mainly due to deferred tax liability remeasurement and 2020 income tax adjustment under CREATE Act, its standalone net income soared 409 percent from P241 million to P1.2 billion. Nickel is mainly used in stainless steelmaking, but is also a vital ingredient for the lithium-ion batteries used to power electric vehicles (EV). The International Energy Agency estimates that global EVs will grow 14 times to 145 million by 2030.
Philippine Resources - May 26, 2022
Legal framework needed for gov’t to invest in nuclear power plant
Department of Energy (DOE) Undersecretary Gerardo Erguiza Jr. said there is a need to amend the Electric Power Industry Reform Act (EPIRA) to enable the government to invest in nuclear power plants. This, as the incoming administration has expressed its support in considering a nuclear power plant to be part of the country’s energy mix. “As of now, the government does not have the ability to put up conventional nuclear power plant because the National Power Corp. does not have mandate on this,” Erguiza said in Filipino during the Laging Handa public briefing Wednesday. With the privatization of the power sector under the EPIRA, the government could not enter into power generation. “But we can align together, with the drafting or putting up of the regulatory framework, we can amend our laws to include the government among those that can fund a nuclear power plant,” he added. Erguiza said that based on studies of the Korean Hydro Nuclear Power Company of South Korea and ROSATOM of Russia, they have found out that the Bataan Nuclear Power Plant (BNPP) can still be rehabilitated. According to ROSATOM, an investment of around USD3 billion to USD4 billion is needed to revive the BNPP. Presumptive President Ferdinand “Bongbong” Marcos Jr. earlier mentioned that part of his energy agenda is to revive the BNPP to become an additional source of clean and cheap power. On the other hand, Erguiza said the government can invest in power generation using small modular reactors, the latest nuclear energy technology, in missionary areas that are not connected to the grid.
Philippine Resources - May 26, 2022
Dutch gov’t backs SMC, Boskalis in P740 billion Bulacan Airport project
Photo credit: Palafox Dutch gov’t backs SMC, Boskalis in P740 billion Bulacan Airport project San Miguel Corporation (SMC) received its strongest support yet for its game-changing P740-billion New Manila International Airport (NMIA) project in Bulacan following the approval of the Dutch government of an export credit insurance (ECI) for the project’s land development phase. The approval comes after over a year of rigorous review of the project’s long-term environmental and social impact mitigation measures to ensure that the multi-billion project is done with sustainability in mind and aligned with the country’s climate ambitions. The Dutch government, represented by Atradius Dutch State Business (DSB), extended the ECI to Royal Boskalis Westminster N.V., to cover its EUR 1.5 billion contract for land development works at the airport project site in Bulakan, Bulacan. The NMIA project is the largest in Boskalis’ over 100-year history, and is also the largest export credit agency (ECA) insurance policy granted in the 90-year history of Atradius. SMC President and Chief Executive Officer Ramon S. Ang thanked the Dutch government for its support to NMIA, a project seen to catalyze sustainable economic growth for the Philippines, especially post-pandemic. It is seen to deliver over a million jobs to Filipinos. “This is a significant milestone not only for San Miguel and the NMIA project, but for the entire country. With this, we are closer to our dream of having a world-class, future-ready, and sustainably-built international gateway, proudly built by Filipinos for the Philippines. This also validates our work with Boskalis to ensure that this project is done right, and will provide long-term economic, environmental, and social benefits to our host communities and Bulacan province,” Ang said. In a statement posted on Boskalis’ international website, its CEO Peter Berdowski, said: “I am very pleased that all the hard work with a large team of experts has been successfully completed (today). For more than a year, we have worked intensively with Atradius DSB to ensure that the construction of the new airport will take place in a socially responsible manner.” He added: “In collaboration with Atradius DSB, the Dutch embassy, we succeeded in developing a broadly supported plan with an eye for the local community and the preservation of biodiversity. I would like to thank all those involved for their contribution to the positive decision of the State.” In the same statement, Atradius DSB Managing Director Bert Bruning said: “This project is unique on so many levels. Firstly, of course, as a very important contract for our client Boskalis, but also for us, as the largest ECA policy in our 90-year history,” he said. “In addition, I am proud of the fact that together with Boskalis and San Miguel, by keeping up the dialogue, we were able to ensure that the project is to meet international standards in the field of environmental and social conditions. In doing so, we have not only contributed to making this wonderful contract possible built also really made a difference together for the local communities and nature.” As part of the ECI process, a large group of experts from San Miguel, together with Boskalis and four renowned consultancy firms, conducted an extensive environmental and social impact assessment in accordance with the highest international standards. This process also included the conduct of impact analyses and compensation packages for adverse effects of the project. “This shows that the airport project and our environmental and social mitigation plans are not only sound, but robust and strong, given they can pass not only international standards but the exacting requirements of the Dutch government. It is another testament to the ability of Filipinos to be world-class,” Ang said. “We will continue to work with Atradius, the banks, experts, national and local government, and all stakeholders to ensure we will build this project in a sustainable manner and in compliance with the highest international environment and social standards,” Ang reaffirmed. added. The airport project will feature four parallel runways, a world-class terminal, and a modern and interlinked infrastructure network that includes expressways and railways. Article courtesy of San Miguel Corp
Philippine Resources - May 25, 2022
CTPCMC Allocates 7.7M for COVID-19 Initiatives
Article by: Roniel R. Arguillas - CTPCMC ICE Officer BAYANIHAN AMIDST THE COVID-19 BATTLE In order to protect and improve the lives of the people within the host and neighboring communities pursuant to Republic Act (RA) No. 11469 or the “Bayanihan to Heal as One Act”, CTP Construction and Mining Corporation or CTPCMC allocated 7.7 million pesos intended for the implementation of projects, programs, and activities (PPAs) on COVID-19 prevention. Through its Social Development and Management Program (SDMP) under Adlay Mining Project (AMP) and Dahican Nickel Project (DNP) the company implemented essential PPAs in the year 2021. The beneficiaries of PPAs were from the Host and Neighboring communities specifically Barangay Adlay, Barangay Dahican and Municipality of Carrascal. With an allocated budget of P2,060,803.78, a Covid-19 Assistance Center was put up to be the second line of support to the host communities if their existing Isolation Rooms have been fully occupied. The company’s employees and their dependents are to be prioritized in the center. The center is offering services which include free isolation room for those who are identified and confirmed as covid-19 patients, free vitamins, and over-the-counter drugs, 24/7 monitoring by health personnel and stand-by oxygen concentrators. Another PPA was the provision of 59 medical equipment and kits to Barangay Adlay. The provision included pulse oximeter, thermal scanner, LCD full digital ultrasound machine, hospital bed and refrigerator as vaccine storage. The turnover was done on December 14, 2021, held at Barangay Hall of Adlay. It was attended by Engr. Charlo R. Basadre CTPCMC Resident Mine Manager, Charid O. Cuadrillero ComRel Manager, Hon. Norberto O. Rubi Jr. Barangay Captain, and Raquel Bungcaras assigned nurse. “These are very essential and a huge help to the key front liners and to the people within the community.” Hon. Rubi said during the turnover. The company also provided two SDMP Emergency Response Vehicles for health-related emergencies.