DMCI Holdings Inc. on Tuesday said it was reviewing its operating assumptions as the Middle East war continues to disrupt fuel supply chains, raising concerns about fuel availability across the group.
Key executives said that while the group’s capital expenditure (capex) program would proceed as planned, internal cost projections were now being reassessed due to shifting market conditions.
“Well, the capex is set already so we just have to follow it. Of course, the operating costs will now be revisited,” DMCI Executive Vice President and Chief Finance Officer Herbert Consunji said.
“[T]he price is different now. It's not just a matter of price; it's a matter of availability. That’s the major factor. You may have money to buy it, but it's not available because the suppliers downgraded,” he added.
Consunji said uncertainty surrounding the situation could lead to broader adjustments, emphasizing that “everything will be reset” as conditions evolve.
Fuel supply risks are particularly critical for Semirara Mining and Power Corp., which relies heavily on fuel for both mining and power generation.
“Well, nobody would want to guarantee the supply,” DMCI Holdings Vice Chairman and Semirara Mining President Cristina Gotianun said.
“There is a notice of award, but no guarantee, so we will see. Our strategy is that whatever is available, we get it and we deliver. We just have to do that more often,” she added, noting that some suppliers had already backed out, further tightening availability.
Despite these challenges, operations across the group remain uninterrupted, DMCI said.
Other business units are making selective adjustments, with DMCI Homes saying new project launches may be delayed although ongoing developments will continue given existing commitments to buyers.
Across the group, companies are also taking steps to cushion the impact of rising fuel costs, which include implementing surcharges and passing through increases in phases, particularly in the cement business.
Executives acknowledged that contingency measures remain limited if supply conditions worsen, with fuel sourcing increasingly dependent on what is available in the market.
DMCI shares added P0.10, or 1.05 percent, to close at P9.60 each on Tuesday.
