DIVERSIFIED engineering conglomerate DMCI Holdings Inc. on Wednesday reported earning P5.6 billion in the first quarter of this year, down 25 percent from P7.5 billion in 2023, amid stabilizing commodity prices.

Net earnings, however, climbed 19 percent from the preceding quarter's P4.7 billion and nearly doubled the P2.9 billion booked in the first quarter of 2019, the listed holding firm said in a stock exchange filing.

In the first three months of the year, consolidated revenues slipped 17 percent to P27.4 billion from P33 billion, following lower contributions from the majority of the group's businesses.

"Market prices pose a significant challenge for us this year," DMCI Chairman and President Isidro Consunji said in a statement.

"We do not expect coal, nickel and electricity prices to recover to the highs of the past two years due to shifts in demand-supply dynamics," he added.

"To mitigate these external challenges, we will focus on improving operational efficiency and refining our marketing strategies to enhance the value of our products and services."

The conglomerate said that DMCI Power's contribution had almost doubled to P264 million from P134 million, propelled by higher generation capacity and electricity demand, aided by reduced fuel costs.

Contribution from affiliate Maynilad also rose, by 28 percent to P664 million from P519 million, due to increased billed volume, improved customer mix, and a better average effective tariff.

Coal miner Semirara Mining and Power Corp. saw its first-quarter net income decline 27 percent to P3.5 billion from P5.1 billion despite increased coal shipments and electricity dispatch as market prices weakened.

DMCI Homes' contribution totaled P879 million, 12 percent lower than the P994 million booked in 2023, driven mainly by "revenue recognition slowdown from ongoing and new accounts," DMCI said.

Construction unit D.M. Consunji Inc. chipped in P98 million during the quarter, down 64 percent compared to last year's P273 million, blaming project delays and lower ongoing developments.

DMCI Mining, meanwhile, posted a net loss of P22 million from January to March 2024, reversing the P473-million profit recorded a year earlier, due to reduced shipments, lower nickel grades and weaker selling prices.

DMCI's share price dropped by 28 centavos to close at P10.88 each on Wednesday.