DMCI Mining core profits up 8% in Q2
August 18, 2022 - Thursday 11:08 AM by GDM
DMCI Mining Corp. posted an 8-percent upturn in standalone second-quarter core net income, as higher selling prices and a stronger US dollar offset the combined impact of lower shipments and higher fuel costs.
In a statement, DMCI Mining said its core net income went up from P502 million to P542 million in the second quarter.
Including the impact of CREATE law last year, its standalone net income for the period contracted by 28 percent from P749 million to P542 million.
"We are seeing some topline weakness because the depletion of Berong mine but with elevated nickel prices and steady production of our other mining asset, we think we can end the year strong," said DMCI Mining president Tulsi Das Reyes.
DMCI Mining revenues declined by 20 percent for the second quarter alone from P1.5 billion to P1.2 billion.
Average selling prices of nickel ore surged by 50 percent from $42 to $63 owing to global supply disruptions and strong China demand, while the US dollar appreciated by ten percent against the local currency.
From April to June, shipments plunged by 51 percent from 746,000 wet metric tons (WMT) to 367,000 WMT after production from sole operating asset Zambales Diversified Metals Corporation contracted by 24 percent from 328,000 WMT to 248,000 WMT.
Consequently, DMCI Mining's standalone topline for the first semester was flat at P2.6 billion, while core net income rose by 11 percent from P979 million to P1.1 billion. Meanwhile, net income slipped by 11 percent from P1.2 billion to P1.1 billion with the adjustments made in 2021 relative to the CREATE law.
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