Professional Documents
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Market Performance
DMCI Holdings, Inc. posted P7.5 billion in consolidated core income for the
first nine months of 2014, a 6% decline from the P8.0 billion reported in
the same period last year. The drop in core income was attributable to the
weakened operating results of the power and construction
businesses.
Maintenance contractor delays resulted in extended outages in the
Calaca power units, exposing the power business to high Wholesale
Electricity Spot Market (WESM) prices for its replacement power during
the first half of the year.
Meanwhile, earnings from the construction business were dragged down
by cost overruns in its engineering, procurement, and construction
(EPC) contract for a power plant, and the delayed implementation of
major public infrastructure projects due to right-of-way and utility
relocation issues.
On the other hand, the mining businesses have rebounded well from
last year and have shown remarkable growth in net income contributions
due to a combined effect of higher sales volume and better average
prices.
The Company is reporting a 4% decrease in net earnings share from
the water business as a result of reduced effective interest in Maynilad.
Reported consolidated net income decreased by 54% year-on-year
mainly due to the onetime gain on sale recognized in 2013.
Executives
For the three quarters ended September 2014, AEV and its subsidiaries
posted a consolidated net income of P14.26 billion (bn), a 14% yearon-year (YoY) decrease.
Operating profit for the current period amounted to P19.36 bn, an 11%
increase YoY, as the P23.44 bn increase in revenues surpassed the
P21.47 bn rise in costs and expenses. This increase was mainly
attributed to the performance of power and real estate groups
and the full contribution of VECO which was consolidated towards the
end of the second quarter of 2013.
AEV disclosed a couple of initiatives which it hopes will serve as new
avenues of growth in the years to come, such as:
o Production of Liquid Biomethane, In June 2012, AEV
partnered with British company GazAsia Ltd. to build a plant that
produces liquid bio-methane fuel from organic waste.
o Davao Bulk Water Supply Project, AEV has agreed to enter
into a joint venture with J.V. Angeles Construction Corp. (JVACC)
to jointly construct both a raw water treatment facility with RE
component and conveyance system which will deliver 300 MLD
of treated bulk water to Davao City, the third largest city in the
Philippines.
Erramon I Aboitiz,
Mikel A Aboitiz, Senior VP/CIO
they are not providing a room for expansions currently. Aboitiz Equity, on the
other hand, although may experience little setbacks, is performing better
than the other, and is really after numerous expansions and improvements,
which indicates a good business performance, therefore, a good company to
invest in.
In terms of its stock trend, DMCI showed a very volatile trendthereby
indicating an unpredictable stock, which is not preferable for investors who
are after capital appreciation. Aboitiz, in the contrary, is somewhat stable,
the trend showed that its stock price is slightly tilting upward, thereby
indicating a good future for an investment, especially in maximizing ones
equity wealth.