DMCI expects return to pre-pandemic levels in 2023
DMCI Holdings, Inc. said it expects to revert to pre-pandemic levels starting 2023, as the firm anticipates the recovery of its units amid the global health emergency.
“Considering the (coronavirus disease) vaccine rollout is only starting, it will probably end by the first quarter of next year. So, the side effects of this pandemic would probably end up at the end of 2022. So, pre-pandemic economic condition will probably begin in 2023,” DMCI President and Chief Executive Officer Isidro A. Consunji said during the company’s annual stockholders meeting, which was virtually held on Tuesday.
He made the comment when asked about when DMCI is expected to return to pre-pandemic profits.
During the event, he gave an outlook on several units under the holding firm, including its construction, real estate and power segments.
Mr. Consunji, who is also DMCI chairman, said that he expects a strong bounce-back from the firm’s construction arm D.M. Consunji, Inc. this year, because of its substantial order book, higher barracks capacity and additional workers.
“Productivity is also higher because unlike last year, essential and priority infrastructure projects are allowed to continue even during ECQ (enhanced community quarantine),” he said.
He said the firm’s real estate segment DMCI Homes is likely to fare better this year due to its considerable unrecognized revenues, better construction productivity and efforts in optimizing resources. But he noted that “softening demand for mid-segment projects caused by job insecurity and unemployment may negatively impact its profitability by 2023.”
However, he is optimistic that resort-type developments will sustain buyer interest.
Mr. Consunji said that the firm expects the earnings of its coal producer Semirara Mining and Power Corp. (SMPC) to improve on the back of better market conditions. But the water seepages at the Molave North Block 7 in Antique and prolonged outage of a unit of its Calaca power plant will “temper” the company’s financial results.
Operational headwinds will likely persist for SMPC, he said.
He added that mining unit DMCI Mining Corp. could increase its reserves by 276 million wet metric tons, if all pending mineral production sharing agreements are approved.
Mr. Consunji also gave updates on DMCI Power Corp., which is continuing with its expansion plans. He said the unit begun the construction of a 15-megawatt (MW) thermal plant in Palawan, which is seen to stabilize power supply in the area.
DMCI Power is also building a 4-MW hybrid solar-diesel plant in Masbate that is targeted to go online by next year.
Mr. Consunji said that DMCI intends to participate in the government’s Build, Build, Build (BBB) program as joint-venture partner or sub-contractor, since the projects “will not allow DMCI to participate as a single entity.”
DMCI’s first-quarter attributable net income rose by nearly seven times to P4.25 billion, from P616.45 million in the same period last year.
Shares of DMCI in the local bourse improved 0.37% or 2 centavos to close at P5.46 apiece on Tuesday. — Angelica Y. Yang