DMCI Holdings, Inc. ($DMC)

Good afternoon, everyone. Thank you for joining us for DMCI Holdings Fourth Quarter and Full Year 2025 Analyst Briefing. My name is Hannah Chan from Investor Relations, and I'll be taking you through a short presentation on the group's financial and operational performance for the year, and we'll leave more time towards the end for the Q&A. So joining us today are members of the group's top management team as shown on your screen, led by our Chairman and President, Mr. Isidro A. Consunji; and our Executive Vice President and Chief Finance Officer, Mr. Herbert M. Consunji. Before we begin, just a few reminders. This session is being recorded and questions may be sent through the panelist box. We'll prioritize questions submitted in advance, but we'll try to cover as many as possible during the session. Management may also make some forward-looking statements during the discussion, and these are based on current assumptions and expectations, and actual results may differ due to various risks and uncertainties. With that, let's begin. So let me start with the group's fourth quarter performance. Consolidated net income came in at PHP 3.3 billion, down 14% from PHP 3.8 billion in the same period last year. The decline was mainly due to softer contributions from our Integrated Energy segment as well as the dilution of our effective ownership in Maynilad from 25% to 18% following its IPO last November 7. Losses from the Cement segment during its integration phase also continued to weigh on the results. Even so, we saw stronger contributions from DMCI Homes and DMCI, which helped partly offset the decline. For the full year of 2025, DMCI Holdings reported consolidated net income of PHP 15.1 billion, down from PHP 19 billion in 2024. The decline mainly reflects normalizing contributions from the integrated energy business, particularly as coal and electricity price has moderated compared with the elevated levels in the previous years. At the same time, our cement business is still going through its integration phase, which also weighed on the group's results. That said, several of our businesses delivered stronger contributions during the year. In particular, real estate, construction, nickel mining, water and off-grid power all posted improved results. So while earnings were lower year-on-year, the results also highlight the value of having a diversified portfolio, especially as different businesses move through different cycles. Moving to the group income statement. For the year, revenues reached PHP 108.7 billion, up 6% from 2024. This increase was mainly driven by the consolidation of the cement business, along with stronger contributions from construction, real estate, nickel mining and off-grid power. Margins, however, were lower. EBITDA margins eased to 33% from 39%, while net margin stood at 18% compared with 27% last year. This was mainly due to softer coal and electricity prices, higher construction costs due to project delays and the addition of cement operations, which is still, again, in the integration phase. And that said, the group's fundamentals remain intact with return on equity at 13% and supported by steady cash generation and prudent capital management. Now let me move to the balance sheet. The group continues to maintain a healthy financial position with manageable leverage and strong liquidity even after nearly PHP 40 billion in dividends, capital spending and debt servicing. During the year, DMCI paid a total of PHP 14.3 billion in dividends, equivalent to 76% of 2024 core net income, well above our 25% policy. This translates to a 10% dividend yield based on the 2025 volume-weighted price while preserving financial flexibility to navigate market conditions and support the business. Now turning to the stand-alone results of our key businesses. Let me start with construction. DMCI delivered stronger performance in 2025, supported by higher project accomplishments across infrastructure and joint venture projects. Despite higher costs due to project delays, the business still posted improved earnings with full year net income at PHP 554 million, up from PHP 467 million last year. The company also maintained its debt-free position since 2023, providing flexibility to pursue select project opportunities while maintaining a light and efficient balance sheet. Construction revenues rose driven by higher contributions from infrastructure and joint venture projects. Infrastructure revenues were supported by peak and near completion phase of major works, while joint venture contributions were driven by continued progress in the contract packages in the Metro Manila Subway project and the South Commuter Railway project. The order book increased to nearly PHP 39 billion, supported by new awards, including the MMSP, Metro Manila Subway Project Package 105, which will connect the Kalayaan and BGC stations as well as a pipelaying project awarded in the fourth quarter. Moving to the real estate. DMCI Homes posted strong growth with net income reaching PHP 3.1 billion in core net income, up from PHP 2.5 billion. This was driven by higher revenue recognition from accounts that reached the collection threshold following the completion of Alder Residences and Allegra Garden Place as well as continued focus on ready-for-occupancy unit sales. Strong take-up of rent-to-own units also supported earnings, contributing to higher other income, which rose 19% to PHP 3.6 billion in 2025. This also supported cash generation with cash balance rising by 18% to PHP 11.4 billion, while the company further deleveraged, bringing net debt to equity down to 55%. For nonrecurring items, the 2025 gain of the -- gain relates to a compromise settlement of a claim involving the company's former investment in North Rail, which had been fully written off in 2007. The company received approximately PHP 380 million in December 2025. On the operational side, sales reached a high base effect from the launch of Kalea Heights in the fourth quarter of last year. It is the company's largest project to date and its first venture in the Visayas region with no project launch in 2025 as the company focused on ready for occupancy units. As a result, RFO sales increased and accounted for a larger share of the sales mix. Demand for rent-to-own units remains strong. Rent-to-own units remained strong with pickup rising to around 2,500 units from 1,500 last year as buyers showed greater preference for flexible payment options. Meanwhile, the ready-for-occupancy inventory increased by 6% to PHP 24.8 billion from PHP 23.3 billion last year following the completion of Alder Residences and Allegra Garden Place. Overall, the company continues to take a prudent approach, prioritizing inventory sell-down while preparing for future launches. Moving on to the integrated energy. Revenues were lower due to softer coal and power selling prices, although record power sales helped cushion the impact. In the fourth quarter, cash cost declined as shipments and power sales eased alongside a lower government share. For the full year, 2025 was a year of more stable energy markets, supported by strong operating performance from SMPC. Net income reached PHP 13.1 billion, down 33% as markets continue to normalize as well as higher production costs. Operationally, however, SMPC delivered record coal production of nearly 20 million metric tons, the maximum allowed under our environmental compliance certificate, along with the record power output. The Power segment also posted its best ever generation and electricity sales supported by improved plant performance during the year. Importantly, the group continued to delever with total debt declining to just 2% of total assets, keeping SMPC on track to become debt-free by 2027. On coal operations, production remained strong during the quarter. Coal production increased 16% to 4.8 million metric tons, supported by better access to coal seams at the Narra Mine and the ECC expansion, while shipments declined because commercial grade inventory at the start of the quarter was low at around 300,000 metric tons as of the end of September, which limited export volumes. China remained the largest export market, while Indonesia emerged as a new destination, helping broaden the market for Semirara coal. With stronger production during the quarter, total coal inventory increased to about 5 million metric tons, including 1.7 million metric tons of commercial grade coal, improving availability for shipments going forward. On the power side, plant performance was mixed during the quarter. Overall, availability was broadly stable as stronger performance from SLPGC helped offset outages at SCPC. Average running capacity declined mainly due to SCPC outages, which reduced generation and sales. SCPC's average capacity fell to 296 megawatts from 506 megawatts due to a combination of planned and unplanned outages, including a maintenance shutdown in a turbine rotor incident late in the quarter. So now let's take a look at our off-grid energy business. DMCI Power capped the year with record results as stronger energy sales lifted full year net income to PHP 1.34 billion, up 6%. Margins improved on lower fuel costs with EBITDA margin rising to 28%. Depreciation increased as new capacity came online, including Semirara Wind. Borrowings also rose to support the 2026 expansion program with leverage remaining manageable at 1.25x net debt to equity. On the operational side, growth continued on expanded capacity. The commissioning of two 8-megawatt Palawan bunker plants in March and May, together with 12.5 megawatt Semirara Wind project in June increased the installed capacity by 18% to 188 megawatts. Energy sales increased by 2%, supported by higher offtake in Palawan and Antique, which helped offset weaker sales in Masbate and Oriental Mindoro. In Masbate, sales declined mainly due to the impact of the Typhoon Opong in September, which affected parts of the grid. In Oriental Mindoro, operations were constrained by a transformer outage. Average selling price has softened on lower fuel costs, while market share improved in Palawan. Despite temporary disruptions in some areas, these expansions strengthened DMCI Power's ability to deliver reliable and affordable electricity to more island communities. Now let's move to nickel mining. DMCI Mining saw the stars aligned in 2025 with stronger nickel markets and expanding operations. Net income reached PHP 882 million, more than triple of last year's PHP 214 million as higher shipments and improved market conditions lifted performance. Margins also improved with EBITDA margin at 41% and net income margin at 22%, reflecting stronger operating leverage. Overall, the business enters 2026 with a larger operating footprint, supported by the ramp-up in Zambales and the start of Long Point mine, positioning DMCI Mining to benefit from stronger nickel demand in Asia. On operations, production shipments improved as ZCMC delivered its first full year-- quarter of output and DMCI's Long Point mine began initial operations. As a result, production rose by 29% and shipments increased by 55%. Average grade and nickel selling price were lower at the beginning inventory consisted of mostly low to mid-grade nickel ore. Ending inventory increased mainly due to shipment timing, which leaves the company with more stock available to support shipments in 2026. Maynilad delivered another banner year with record revenues, earnings and capital expenditures. In the interest of time and since Maynilad already had held its briefing a few weeks ago, we won't go through this in detail today. The results were supported mainly by tariff adjustments, continued non-revenue water improvements and steady expansion in the service coverage. Now moving to cement. 2025 marked DMCI's first full year managing Concreat and the year was largely about stabilizing the business and putting the building blocks in place for recovery. For the full year, revenues came in at PHP 15.1 billion, slightly lower year-on-year due to softer average selling prices despite sustained volumes. On the cost side, we saw early benefits from operational initiatives with full year cash costs down by 8%, supported by lower fuel, selling and administrative and logistics costs, although this was partly offset by supply disruptions at APO earlier in the year. Even with these improvements, the business posted a net loss as it continues to work through integration and market pressures. Net debt to equity increased to 1.72, but remains within manageable levels. Now on cement operations. Installed capacity increased; following the completion of the 1.5 million metric ton solid cement plant expansion in April 2025, bringing rated capacity to about 7.2 million tons. With the step-up in capacity utilization eased to 57%, reflecting the larger base, while production increased by 11% on higher output from the solid plant. Sales volumes were broadly flat amid the softer market conditions. And the company reintroduced ordinary portland cement in key markets and continued rebalancing its product mix to sustain sales. Pricing also eased in line with broader industry conditions, including muted demand and import competition. Overall, inventories remained stable, indicating balanced production and sales levels as the business continues to ramp up operations. To summarize our full year results, while the energy market continued to normalize and cement remains a work in progress. The group continued to deliver broadly steady performance supported by stronger contributions from most of the businesses. Construction benefited from higher project accomplishments. Real estate saw stronger revenues from newly qualified accounts and integrated energy remained operationally solid while continuing to delever. Off-grid Power delivered a record year on stronger sales, nickel mining rebounded on better markets and expanding operations and Maynilad posted its best ever results alongside record investments. Overall, these results underscore the value of a balanced portfolio and the group's continued focus on execution, efficiency and disciplined capital management. To close, a quick outlook and updates across the group. Looking ahead, we remain focused on operational efficiency, prudent capital management and expanding market reach across our businesses. We also continue to monitor geopolitical developments, particularly tensions in the Middle East, which have already influenced fuel, coal and nickel prices. Given fuel's impact across the several segments, we remain focused on fuel cost management and operating discipline. For construction, DMCI continues to pursue infrastructure and transport opportunities, including rail, while selectively participating in private building and negotiated projects supported by a disciplined bidding strategy. For real estate, DMCI Homes will prioritize RFO sales through flexible payment schemes while preparing launches such as the One South Drive in Baguio and Moriyama Nature Park, alongside transit-oriented developments and the ongoing redevelopment of Acacia Estates. For integrated energy, SMPC remains focused on efficient operations while preparing for the COC bid with submissions on April 28, 2026. The opening of Acacia Mine improved access and higher inventories are expected to support production and shipments, alongside the continued focus on strategic contracting and fuel cost management. For DMCI Power, the company commissioned an 8.8-megawatt plant in Masbate in March 2026, with about 44 megawatts expected to come online this year as expansion continues. In addition, DMCI Power recently won and was awarded with a competitive selection process for a 17-megawatt bunker-fired power plant in Occidental Mindoro. The power supply agreement was signed on February 25, 2026, and the plant is targeted to commence operations in the first half of 2027. For DMCI Mining, Long Point in Palawan began commercial operations in March 2026, lifting total operating capacity to around 3 million metric tons for 2026. The enhanced mining tax regime also took effect in February 17, and the company continues to focus on execution and cost management as the industry transitions. Finally, Concreat continues to implement operational and commercial improvements supported by expanded capacity at the Solid plant, improved fuel sourcing and logistics and port upgrades to support its recovery. So with this -- this ends my presentation and move forward to the Q&A.

So let's start off. We'll prioritize questions sent in advance and let's start off with questions addressed through construction to DMCI. So with us this afternoon is [ sir JVG and sir, JY Lock. ] So good afternoon, sir JVG and -- Mr. Jorge A. Consunji, President of DMCI. Sir, JAC and JVG, and JCL. So the question goes, can you please provide revenue and profit guidance for 2026? Do you anticipate higher revenue bookings this year even though the government's infrastructure budget is significantly less?

I'm Jorge Consunji, President of DMCI. Point, we do have the business plan or targets for 2026 prepared last year. We are currently on the process of evaluating it because of the geopolitical issues that we are encountering and we are expecting project delays due to logistical supply uncertainties, which we have no control. And second, we might be looking at a lower profit due to logistics surcharges and availability despite we have secured our ForEx coverage through forward buying before. And the third one, if this Iran issue will end soon, then we'll have a better position. We are also talking to our project owners -- to the project owners to consider this as geographical event as force majeure. On the anticipated higher revenue bookings, we expect an award of subway section that will increase our revenue, assuming we will start this year. And we are hoping that the government infrastructure bid will be better that will entice us to participate in the bidding.

Next question, how do you expect your order book to evolve this year?

The current order book situation -- the current market situation makes it challenging for us to predict the outlook of our [ pipeline. ] Project delays may prolong the realization of our outstanding order books and projects award may slow down due to unfavorable macroeconomic indicators. But despite this, DMCI is actively pursuing multiple promising leads for major negotiated projects and remain hopeful that some will be realized this year.

So we move on to questions addressed to DMCI Homes. So with us this afternoon is Mr. Freddie Austria, President of DMCI Homes; and Ms. Evangeline Atchioco, Chief Financial Officer. The first question addressed to [Eha. ] The question goes, you reported reservation sales of PHP 3.5 billion in the fourth quarter of 2025 and PHP 19.7 billion in the first 9 months of 2025, totaling to PHP 23.2 billion. However, full year reservation sales are only PHP 21.4 billion. Could you explain the discrepancy?

So the PHP 21 billion reported reservation sales as of December are already net of cancellations. So the -- when we aggregate the 9 months reported sales plus the Q4 of 2025, so the impact or the difference pertains to the impact of the cancellations during the year.

Next question, how much are unsold inventory? And how does this compare with reservation sales in the full year of 2025?

Okay. So our RFO unsold inventory as of year-end is still slightly higher than our reservation sales for the full year of 2025. However, for the second half of the year, we've sold more RFO units than our non-RFO units, so about more than 50% of our sales are from RFO which indicates the shift, the shift from the end user -- indicating the demand from the end user market. And also this year, we are still focused on selling -- increasing our RFO sales as well as generating more RTO, rent-to-own contracts so that we can bring down our RFO inventory to a lower level compared last year.

Sorry, for the third question, ma'am, is addressed through Sir [indiscernible]. Sir, what key indicators will trigger the execution of your launch pipeline? And how much lower do you desire your inventory to come down by?

This year, our focus remains to be selling RFO units. And that's why the year -- in the previous year, we did not launch any new projects. But this year, we've just -- we're about to launch a project, but this is in joint venture with Dacon Corporation. So what triggers our launch is, well, we look at -- in specific areas, we look at the market in those areas and competition. And for example, the one that we are about to launch in Baguio City, I think that's the right time to launch it. So it really depends on the market conditions in those areas. Also, we consider the readiness of our sales force to continue selling these projects. And generally, if inventory goes down, the sales teams, they always lobby for more launches. But we tend to manage them and balance them off so that ideally, the inventory does well, will be down to around 3 years' worth of sales, which is -- will be around PHP 80 billion in value.

Sir, last question for now. Can you please provide guidance on our revenue, EBITDA margin and profit outlook this year?

This year, we anticipate moderate growth in both income and EBITDA around -- we expect around 15% growth.

We now move on to questions addressed to DMCI Power. So with us is Mr. Antonino E. Gatdula, President of DMCI Power. First question goes, will the full PHP 3.3 billion in CapEx for 2026 be deployed for the additional 44-megawatt capacity additions within 2026?

Yes. Good afternoon to everyone. Of the PHP 3.3 billion allotted for the 2026 CapEx, only the CapEx for our second unit of 15-megawatt coal-fired power plant in Palawan amounting to PHP 1.6 billion is indefinite. The disbursement for the said CapEx will depend on the approval of permits from regulatory bodies. However, we remain optimistic that approval will happen in the next -- in the coming months, given the EPNS status or Energy Project of National Significance issued by the Department of Energy.

The next question, how much is the project cost for the 17-megawatt bunker fired plant targeted for commercial operations in 2027?

Yes. For the 17-megawatt bunker-fired power plant in -- we will put up in Occidental Mindoro, we have budgeted a total of PHP 1.4 billion for the project -- for the project cost.

Okay. Now we move -- thank you, sir. So we move on to questions addressed to DMCI Mining. So to -- President of DMCI Mining, Mr. Tulsi Das. First question, what proportion of your full year cash cost was attributable to fuel-related expenses? And can you please confirm that your operations will begin paying royalties and windfall taxes in 2026?

Good afternoon, everyone. Funny enough, we had a meeting about this earlier. It's about 14% for last year total fuel cost on the cash cost side. And I can confirm we will not be paying windfall tax and royalty tax this year.

Next question, how much are your nickel reserves and resources?

Zambales is winding down. We're about 11 million tons. Palawan, our Berong Nickel Corp consists of 3 assets. Of the 2 assets, we're about 100 million resource. And we're currently drilling our last asset, which is about 2.5x the size of the previous 2. So I'd say confidently, we're about 100 million to 150 million reserves without doing any expo, but that number should -- maybe perhaps go higher.

Next question, what are your production targets this year and beyond?

This year, we would like to do a historical 3 million tons. Unfortunately, one of our Zambales assets will be under FMRDP or final mine rehab for next year. But we also want to enhance our ECC to make up for that and hopefully start another mining asset in Palawan. So safe to say we want to maintain our 3 million tons for next year, if not more, if our ECC is amended, grow to about 5 million to 6 million tons 3 years from now. And the [ end goal ] probably in the next 5 years is 8 million to 10 million tons.

And when do you expect to fully leverage the high-grade nickel ore from your Palawan assets? Could you also provide guidance on how you see overall nickel grades trending this year and in the coming periods?

This market has surprised, I think, most of us because now our nonmarketable ore is being marketed now at very attractive prices. So I would suspect majority of the industry now is selling their limonite or low-grade ore that was not sellable before. I would see that trend continue for this year or most of this next short term. And for us, our limonite and saprolite areas half and the opening areas are about to do in Long Point. Approximately about Q2, we should see some sapro grades coming out of Long Point. But bear in mind, in Zambales and Palawan, we are still trying to fast track this low nickel ore that wasn't sold before or we had no intention to sell before.

Sir, last question for now. Why did the cash cost jump 64% year-on-year in the fourth quarter, even though shipments only increased by 55%. Were there any catch-up expenses booked in the fourth quarter? And what were these?

Well, shipments did rise by 55% in Q4. So I think we were trying to exhaust our ECC at the time and do say test our limits. But aside from that, our Berong Nickel had a shipment and the start-up of Long Point mine started. So there are a lot of start-up costs there. So majority of those start-up costs were due to the Long Point mine starting. But aside from that, maybe some SDMPs are trying to catch up and some FMRDP for Berong Nickel Corp. I would suspect a large majority of that was due to Long Point starting up.

Now we move on to Concreat. We have this afternoon, Mr. Herbert M. Consunji, President and CEO of CHP. Sir, first question, what were the factors contributed to the 8% year-on-year drop in cash cost in 2025? And what more can you do to bring this down further?

Yes. So I want to state that it is our -- last year was the first year of our operation, and we were greeted by a temporary straining order in Cebu for not to mine. So we have resorted to import clinker, which costs us roughly PHP 300 million. So in spite of that, we were able to bring down, as you said, cash cost 8%. This was due to, well, no more royalties that we have to pay CEMEX before and management fee. Then at the same time, we were able to debug the plant, and we're able to be more efficient. When they turned over the company, it's supposed to be a 7.2 million tons capacity. But the one that was turned over, the 1.5, which is new, then we just have to debug it. So it took us practically up to middle of last year before we were able to operate it, although it's not perfect yet. And up to now, we're still doing some repair works. But also -- well, it's already working. Then second, another thing that we did. We studied the operations, and we found out that we have too much warehouses. And it seems that if you have warehouses, there are a lot of double handling. You bring the cement into the warehouse, then unload it, then load it and again, so on. And these are basic materials, which the more you move, the more cost you incur. So we closed down 11 warehouses. Then we now -- as of now, we are maintaining 2 warehouses. Then we also debug the logistics. We found out that those trucks that goes to our plant, sometimes it takes 1 day to load and to unload and so on. So I mean, it should be only -- our target is 1 hour. But as of now, we're practically 3 hours before when they come in, then 3 hours, then they can go out of the plant. So that takes a lot of effort for the haulers. And at the same time, to be able to dispatch as soon as possible, we activated what they call roto packers. Instead of manually loading it to the truck, we have machines that fixes it and then one way, load it to the trucks, not delays. Then of course, we bought a lot of forklifts to facilitate the loading. And then in [indiscernible], so we asked the MCI to construct or refurbish the existing port, which before we have only 4 loading and unloading ports. And this takes time. And at the same time, we have to use other ports outside of port. So -- and these are costlier because you have to move the cement to another port and then load it to the ship and so on. So now with the help of the MCI, we were able to construct 12 berthing space. And well, it was just finished practically one month ago. So little by little, we're using this port now. So more or less in terms of logistics and cost, this will bring down our cost. Then of course, notwithstanding that we are now buying power from Semirara or Calaca, then coal from Semirara, instead of importing before they were using petcoke. So roughly, those are the things that we have been doing.

Next, what is your demand outlook for both the industry, the cement industry and the company?

Well, based on the different manufacturer, they were thinking -- they are thinking of a demand of 33 million metric tons, although the total capacity is 51 million. So it's a big range because a lot of 20% are being imported from Vietnam. And as far as the company is concerned, last year, we made 4 million metric tons. This year, we're planning to do 4.8 million metric tons.

How about -- what are your -- what are the goalposts that you've set for the turnaround of the company?

Well, since the whole company, the whole DMCI is more or less attuned to cash. So our main target now is to be cash breakeven or cash operating breakeven for this year.

So we received a question regarding the fuel cost addressed to all of the subsidiaries. So the question goes in light of the heightened risk of fuel shortages, what strategic measures are in place to mitigate operational disruptions across the business units? And what is your fuel inventory buffer? So we start off with DMCI, [ sir JAC or JVG ] on the fuel strategic measures?

Okay. On the fuel, we can only do a limited obligations because in our own projects, especially on buildings connected by Meralco. So the fuel that we will use will only for trucks, logistics or equipment for excavation. For infrastructure, it will be more of the equipment. So we put fuel tanks in our project. So we have a buffer. But of course, we're subject also to the duration that we cannot answer okay? And the next one that we are worried of would be the nation as a whole because of the logistics of our suppliers, like delivery of sand, cement, rebar and all. That one, we can only help so much. But we are in talk with them that at least we are very mindful of the inventory control that we don't have a stock out -- stocks. So in that respect, we are on a day-to-day discussions with our suppliers and vendors. Notwithstanding, we're also talking to the various project owners that how it can be compensated because it's also squeezing our profit.

And next is for DMCI Homes to [indiscernible].

Yes. Our situation is really very similar to the situation of DMCI Construction because we're both in construction where it just that we're more focused in residential condos. So the impact to us is the same as the impact to DMCI or in -- it really depends on the impact also to our suppliers. And the fuel that we use are mostly for, again, for our trucks, transit mixers and transport equipment. So we also -- there's a limit to what we can do. If there's really a fuel shortage, then eventually operations will slow down. And if worse comes to worse, the timely delivery of projects may be affected, but it's something that is not within our control.

Next is for SMPC, we have Ms. Christina Sigotiano, President and COO of SMPC.

The same question...

Yes.

Good afternoon to everyone. First of all, even before this crisis, it has always been customary for us to plan the most economical way of handling the overburden in the coal. So that is the biggest cost of mining the coal. We are very conscious of how to execute the mining the most economical way. That's number one. Number two, our trucks are equipped with electronic device that we can monitor the driving of our drivers of the dump trucks that will tell us how to correct their driving habits so that they can also conserve on the fuel while they operate the trucks, and we do give incentives for better driving habits. Also, we are offtaker of 2x6 megawatt wind turbine, the island from our affiliate BPC. So during -- on a windy day, we can -- it generates about 11 megawatts, 10 to 12 megawatts. So that helps us in conserving our fuel consumption. And just of 2 hybrid dump trucks, 100 metric tons per dump truck. We're going to try this out. It's a hybrid and it guarantees at least 15% fuel consumption of savings. So we will try this. And if this is going to be successful, we intend to -- and if we will be awarded the coal operating contract, we intend to purchase these hybrid trucks. We have to make sure that there is supply of the fuel because this is the one that will make us operate the mine. So the last fuel delivery we received was sometime end of February to early March. And this is good for about 60 days, 45 to 60 days, depending on the weather during the dry season, we consume more fuel than during the wet season because we stop operations since it is unsafe. So for us to make sure that we will have the fuel supply, we booked an early supply contract for fuel, we are expecting this to be sometime April, end of April. We're also asking our supplier if they can deliver this partially so that we can be assured of continuous operation. So those are the things that we are doing at the mine site with the current fuel situation.

So for DMCI Power, sir, AEG.

Yes. for DMCI Power, our strategic measures to mitigate operational disruptions are, first, we are doing our best to maintain continuous and reliable operations of our coal-fired power plants in Palawan and Masbate. The reliable operations of these plants will reduce consumption of important fuel. Second, we are in constant coordination with our fuel suppliers to anticipate and address future or possible fuel supply issues. Lastly, we just had a meeting with Secretary of the Department of Energy, together with other power providers in the area this morning. And in the meeting, the Honorable Secretary instructed us should there be problems in the fuel supply, the same must be elevated immediately to the DOE so that assistance can be extended promptly to us power providers. For the inventory buffer, we maintain or we strictly follow the ERC's policy of 15 days...

For DMCI Mining. Sir, Das.

So we have similar strategy to Semirara. But on the short term, we did buy some fuel tanks to lengthen our buffer. We first and foremost, we were very site specific. So we had to have a good conversation with our fuel supplier to ensure that we get consistent supply as much as possible because as we know, we don't know if that will be continuous or not. But we've had positive feedback from them saying that nation aside any fuel shortage so far, we seem to be in a good position. So that gives us comfort. On our long-term strategy, we've been looking at doing solar power as well because a lot of our operations, especially in Palawan are genset. So together with DMCI Power, we hope to do a hybrid power mix there. And of course, we've been -- like our solar panels are tower led our solar panels now, and we're constantly looking at EV or hybrid trucks as well. And we do monitor our idle time for our trucks and backhoes to not limit the fuel. In fact, we actually go ecopower more than our backhoes as well. So it is one of the most things that we have been monitoring from before and continue to be monitored now with this crisis.

Sir, about the inventory buffer?

So we've lengthened it. So normally, we did deliveries about I think every once a week, so maybe we'll do maybe 1.5x per week now. We want to test the ability of the supplier to deliver as well.

Okay. So moving forward to sir, HMC for Concreat.

Yes. Our coal supply, well, of course, we are very dependent with Semirara, whatever they give us, then we will burn. Although the plant itself has been using before imported coal, and we have been making computations that more or less, it can -- well, it's a little bit expensive because of the ForEx, but it can use imported coal. So that's the advantage that we have. Then at the same time, then we have talked to the haulers, especially the trucks, then the only thing that they told us is that they just want to have price adjustment of pass on new fuel adjustment. And well, internally, we have a buffer of one month. So the whole month of April, at least we have that and then we have another -- well, next month is another story.

So we now move on to and to the rest of our presidents on patiently explaining our fuel situation across the group. So we move on to questions address to the corporate. So first question is addressed to Mr. Joseph V. Legasto, Deputy Chief Finance Officer. Sir, CapEx guidance for the DMCI Group.

Okay. Good afternoon, everybody. Thank you for the question. For DMCI Group, for 2026, we're looking at a consolidated CapEx program of around PHP 25 billion, which is 11% higher than the previous year. And the bulk of it is really with DMCI Homes, where they are earmarking around PHP 15.5 billion, primarily for land banking and construction of their projects, which ensures our development pipeline for our real estate projects. Another driver for CapEx is DMCI Power, where it's allocating PHP 3.3 billion for expansion of capacity of around over 40 megawatts for the next year. And other businesses will be focused on efficiency improvement, maintenance and selective strategic initiatives for growth. So as you can see, our CapEx program is well balanced for growth expansion as well as operational reliability.

Now we move on to questions addressed to our Chairman and CEO, Mr. Isidro Consunji. Sir, first question, how do you see the DMCI Group perform in 2026?

Good afternoon, everyone. I think the fuel shortage and/or price adjustment is going to affect all our company's operation in varying degrees. Well, it might affect demand for housing. It will definitely affect our cost of operations. And if there is a shortage, it might force us to stop operations completely or partially. So we have that. So it's hard to say how the group will perform without the caveats. So -- but assuming normal we see a better year than -- slightly better year than last year -- slightly better than last year.

Our next question. Despite the uncertainty of over Semirara's coal contract, can investors reasonably expect DMCI can declare dividends this quarter? Will DMCI postpone dividend declaration also like SEC?

It seems to be the favorite question. But anyway, most companies, both Semirara and DMCI Holdings are very liquid, quite liquid. We are postponing the declaration of dividends because there are certain financial ratios that is required by the Department of Energy in order to bid property for the new contract of Semirara. So aside from that, I don't see any reason why we cannot be able to give dividends for the year.

Actually, for this briefing, there's a more favorite question. Regarding your new roles, you answered TDCR just disclosed earlier today at Dominion Holdings Board. Will DMCI be infusing any assets into Dominion Holdings? Or also in this regard or to DMCI Mining or will DMCI or DMCI Mining have any plans to foray into gold or gold or copper mining, even silver considering the high precious metals or the global market?

The stockholder in Dominion Holding is not DMCI. It's the family holding company. As of now, we are thinking of putting in the asset -- may put in the asset in the Dominion Holdings. But we have not made a decision on that. It depends on, I guess, geopolitical situation and the cost of starting the company. But that should be announced most probably before the end of the year. A lot of things are going on now, except decision. Too early to tell it. Thank you.

Thank you, sir. So we've come to -- we have run through all of the questions received. So before we end, may we request our Chairman and CEO, sir Isidro, for the closing remarks.

Good afternoon again. It seems to me that every year, new surprises and this year, a little bit more than normal. However, we see our power business to go up dramatically this year and next year, putting -- will be very productive assets. The assets we invested in last year are now in operation, and we expect that the power -- the result of power this year will be significantly better than last year. And Maynilad has been a successful IPO. The price of the shares has gone up. The last meeting we had, our nonrevenue water has gone down dramatically. We are using less water to service the service area and the tariff has been fixed. So we see pretty steady improvement in -- as far as mainly is concerned. Mining, as mentioned by Mr. Das earlier, will also have a significant growth this year because Berong Nickel operations for the last 2 years. And this year will be the first full operations of Berong. So we expect 1 million tons of lithium and high-grade ore and the price of nickel has gone up significantly from the start of the year. So I think mining will not disappoint. Semirara, we're cautiously optimistic that we will be able to bid properly and with the bid hopefully. Hopes our inventory of ready for occupancy units has stabilized by the end of last year and is trending downwards because of higher sales and higher sales I mean less -- I think, hopefully, less defaults this year. Well, construction is difficult to say. Although we're not dependent on government projects so much, we're very dependent on the confidence, private confidence. So let's just see what happens with this Iran war and then maybe we can give you a better projection next time. Again, thank you very much for attending our analyst briefing. And I hope we continue to have this trust and your support in the future. [Foreign Language] Thank you.

Thank you. Thank you to our panelists, including our Chairman for AIC, and Vice Chairman, [indiscernible], as well as to our -- to the rest of the panelists and to our guests for joining today's briefing. We also extend our appreciation to our teams across the group for their continued support and we value your interest and engagement. The final copy of the presentation deck will be uploaded to our website within a day. So this ends our briefing and good afternoon.