Conglomerate DMCI Holdings Inc. earmarked P46.5 billion in 2022 capital expenditures mainly to fund the expansion plans of property, water utility, coal and power generation businesses.
DMCI said in a presentation during a recent analysts’ briefing this year’s capital spending plan would be 52 percent higher than P30.6 billion it spent in 2021.
The conglomerate said it would spend P18.3 billion this year to develop more residential projects under DMCI Homes. DMCI Homes has 12,000 residential units in the pipeline with total sales value of P106.8 billion.
Water utility unit Maynilad Water Services Inc. will also spend P16.2 billion this year, up 90 percent from P8.5 billion in 2021.
Semirara Mining and Power Corp. allotted P8.8 billion for its 2022 capital expenditures to support the expansion of power subsidiaries Sem-Calaca Power Corp. and Southwest Luzon Power Generation Corp.
Semirara is also targeting to produce 14.5 million to 15 million metric tons of coal this year.
Construction arm D.M. Consunji Inc. is spending P500 million this year. As of end-2021, DMCI’s order book reached P49.3 billion, with P4.7 billion worth of projects added in 2021.
The company is looking to bid for P128.3 billion worth infrastructure projects involving the construction of buildings, railway, bridges, roads, power plants, pier, substation, water treatment and reclamation facilities.
Meanwhile, the remaining capex would go to DMCI’s mining and power generation subsidiaries.
The conglomerate’s net income surged by 214 percent in 2021 to a record P18.4 billion from P5.9 billion in 2020, thanks to surging commodity prices, recovering electricity rates and higher construction accomplishments.
DMCI expects a slow but steady demand for residential projects this year and the recovery of the construction sector with the roll-out of “Build, Build, Build” projects post-election.
It also expects coal and electricity prices to remain elevated because of the geopolitical crisis.
