Despite escalating global tensions and rising oil prices, DMCI Holdings, Inc. intends to maintain its substantial capital expenditure plans for the year. Company leaders affirmed a commitment to previously announced investments, even as they acknowledge the need for careful scrutiny of operational costs.
The company’s planned capital outlays for 2026 total P24.6 billion, an 11% increase from the previous year. These funds are earmarked for critical expansions across multiple subsidiaries, including bolstering residential construction projects, increasing off-grid power generation, and modernizing cement production facilities.
Executives recognize that higher fuel costs present a dual challenge – increased prices and potential supply disruptions. While the committed capital investments will proceed, a comprehensive review of operating expenses is underway to mitigate the impact of these external pressures.
For Concreat Holdings Philippines, a significant P2.9 billion is allocated for plant improvements, upgrades, and essential maintenance. However, the company acknowledges recent financial headwinds, having reported a net loss in the prior year due to rising financing costs and fluctuating selling prices.
The ambitious expansion plans of DMCI Homes, the property development arm, may face slight adjustments. While existing projects will continue as scheduled, the launch of new developments could be postponed if current economic challenges persist.
DMCI Homes is slated to receive the largest portion of the capital expenditure – P15.5 billion, representing 65% of the total. This investment will fuel ongoing and future construction across diverse residential projects in key locations, including Baguio, Laguna, Quezon City, and Taguig.
Semirara Mining and Power Corp., a major contributor to the group’s overall performance, is proactively implementing fuel-saving measures at its power plant and mining operations. Fuel efficiency has always been a priority, given its significant impact on operational costs.
Approximately P1.9 billion is dedicated to Semirara Mining and Power Corp. for essential power plant maintenance. Despite a recent decline in profitability due to market conditions, the company benefited from record levels of coal production, power generation, and energy sales.
Further investments are planned for DMCI Power, with P3.3 billion allocated to add 44 megawatts of new capacity in Palawan, Occidental Mindoro, and Calapan. Additional funds will be used to modernize construction equipment and advance mining development initiatives.
Despite the uncertain economic climate, investor confidence remains steady. Shares of DMC experienced a modest increase, closing at P9.60 each, reflecting a positive outlook for the company’s long-term prospects.
