DMCI’s net profit down 27% to P10.5b

DMCI Holdings Inc. said Thursday it posted P10.5 billion in consolidated net income in 2019, down 27 percent from P14.5 billion in 2018, on lower contributions from power generation business and one-time goodwill impairment charge for a mining investment.

The company said minus the non-recurring loss of P1.9 billion in 2019, mostly coming from the non-cash goodwill impairment for mining assets, DMCI’s core net income decreased 14 percent from P14.5 billion to P12.4 billion.

DMCI said consolidated earnings dropped 70 percent in the fourth quarter to P1.2 billion, pulled down by a 47-percent reduction in earnings contribution from Semirara Mining and Power Corp. and a non-cash goodwill impairment charge of P1.6 billion for the Acoje mine assets of Zambales Diversified Metals Corp. and Zambales Chromite Mining Company.

“Market conditions and regulatory restrictions no longer support our original valuation of ZDMC and ZCMC so the Board decided to write-off the goodwill associated with these investments,” DMCI chairman and president Isidro Consunji said.