MANILA, Philippines - Construction giant EEI Corp. said its net profit jumped 15 percent in the first semester this year due to substantial gains in equity in the earnings of its subsidiaries and overseas joint ventures.
In a financial report filed with securities regulators, EEI said its consolidated net income rose to P291.62 million from P252.83 million a year earlier. This translates to an earning per share of 28 centavos compared with 24 centavos a year ago.
EEI registered revenues of P3.31 billion, down 28 percent from P4.62 billion, largely due to the 33 percent decline in production from domestic construction projects/contracts from P2.94 billion to P1.97 billion.
Revenues from services fell 19 percent to P1.19 billion as well as revenues from the real estate business, which dived 68 percent from P98 million to P32 million.
But equity in net earnings of associates amounted to P142.34 million, 30.8 percent higher than the year ago figure of P108.8 million.
Other income, primarily technical and management fees from its overseas operations, grew 46 percent from P147 million to P214 million while interest income rose 16 percent to P36 million.
In the first semester, domestic construction continued to exhibit weakness as a result of lingering uncertainties from the global economic recession. Property investors and some industrial corporations are reported to have deferred or slowed down the implementation of new real estate and capital expansion projects in 2009.
New contracts and orders obtained by the company during the period amounted to P1.94 billion, almost the same amount as in last year. Backlog representing the value of workable balance of contracted domestic projects of EEI as of June this year was computed at P2.59 billion.
During the period under review, EEI was awarded the general contract for the construction of the 18-storey Acacia Grove condominium hotel in Alabang, Muntinlupa City, toll station work packages for DPWH - Ninoy Aquino International Airport, Villamor Skyway Interchange, new electro-mechanical works for the Biscom Sugar Refinery in Negros Occidental, shutdown work for JGC Corp., Coral Bay nickel mining project in Rio Tuba, Palawan and Globe Asiatique Corporate Center/Skysuites Phase2 in Quezon City.
Construction of the 60-storey twin tower of St. Francis Shang Towers of Kuok Properties in Mandaluyong City, 39-storey Mandarin Square building in Binondo, Manila, sub-structure and civil works for GA Sky Suites of Globe Asiatique Realty Holdings Corp. in Quezon City, the Beacon Tower 1 project of new property developer Geo Estate Holdings in Makati City and Phase 2B of the Serendra Complex of the Ayala Group in Fort Bonifacio, Taguig City are ongoing.
EEI is participating in the P2.84-billion joint venture project with Hanjin Heavy Industries & Construction Co. Ltd. for the construction of Berth 6 of the Manila International Container Terminal of global port operator International Container Terminal Services Inc. (ICTSI). EEI has a 30 percent stake in the project.
On the international front, Al-Rushaid Construction Co. (ARCC), EEI’s overseas joint venture company, bagged a $192-million contract with JGC Corp. for the Saudi Polymers project Saudi Arabia. The company was awarded by GAMA Qatar Co. $12-million manpower services contract under the Chiyoda-Technip joint venture involving erection and electro-mechanical works for the new Qatargas 3 and 4 onshore project in Qatar.
Orders backlog from ARCC projects representing the value of workable production from existing contracts stands at $346.3 million as of the end of June 2009.