House of Investments posts 69% higher income in Q1

Yuchengco-owned holding firm House of Investments Inc. (HI) posted a net income of P111.7 million in the first quarter this year, up 69 percent from P65.94 million the previous year-period.

In a financial report filed with securities regulators, HI said revenues rose 21.3 percent to P3.99 billion from P3.29 billion.  Of the total revenues, P1.89 billion came from construction giant EEI Corp. and another P1.07 billion from other services through car dealerships.

With a 19-percent rise in sales of goods and services, cost of sales increased 21 percent. Operating expenses, on the other hand, went up by only four percent. 

HI said there was a minimal increase in interest expenses due to the increase in loans of portfolio of First Malayan Leasing. 

HI reported a 173-percent increase in equity in net earnings of affiliates due to the improved earnings of EEI and the increase in percentage of equity shares.

EEI reported a three-fold jump in its net profit for the first quarter of the year from P30.75 million to P124.62 million. Consolidated gross revenues rose 38 percent to P1.89 billion from P1.37 billion, mainly driven by the growth from the firm’s construction contracts, principally from its overseas projects.

Overseas operations in Saudi Arabia and New Caledonia continued on their respective contracts backlog with Eastern Petro Chemical (Sharq) and the Inco Goro Nickel Mining project, respectively.

On the other hand, domestic projects contributed P1.07 billion to EEI’s gross revenues. 

EEI is currently engaged in the construction of the St. Francis Shangri-La Place twin towers, the Serendra residential condominium complex, the Makati Medical Center annex building, the GA Tower 2, the Beacon and the Mandarin Square, as well as electro-mechanical works for various industrial projects.

Costs increased 44 percent from P1.18 billion to P1.70 billion in view of increasing volume coupled with increases in the prices of construction materials, petroleum, power and other costs of doing business.  

Selling and administrative expenses slightly increased to P115.31 million from P113 million in 2007. Finance costs and other expenses, likewise rose to P57.02 million due to higher loan amount but offset by lower prevailing interest rates.

As of end-March 31, 2008, EEI’s total assets stood at P7.18 billion, 8.59 percent higher than the end-December 2007 level.