EEI eyes 2nd phase of Petron project

MANILA, Philippines - Yuchengco-led construction firm EEI Corp. is eyeing the second phase construction of Petron Corp.’s Fluidized Catalytic Cracker, which alone could double its domestic backlog and boost its overall revenues in the next two years.

EEI is hoping to secure a $200-million to $300-million contract for the Petron project, which is estimated to cost around $1 billion.

The project is seen to increase EEI’s backlog by P8.6 billion to P12.9 billion. Total construction backlog from domestic projects amounted to P11.62 billion as of the end of September 2011.

One of the notable projects bagged in the third quarter last year was JG Summit’s P2 billion naphtha cracker project.

To ensure sustained growth, EEI is seen to bid for road and expressway projects under the government’s public-private partnership (PPP) program.

The Aquino administration is targeting to bid out eight to 16 PPP projects worth around P80 billion to P142 billion. Among these projects include the P20.18-billion North Luzon Expressway-South Luzon Expressway Connector Road; P19.69-billion CALA (Cavite and Laguna Side) Expressway; P11.3-billion Light Rail Transit 2 East Extension; P10.15-billion Mactan Terminal 2 Airport Development; and P8-billion New Bohol Airport.

EEI is expected to book strong revenue growth in 2011 and this year on the back of a growing backlog and improving performance of its Middle East-based subsidiary.

In the nine months ending September 2011, EEI reported a 28 percent growth in net profit to P581.53 million. Revenues likewise grew 25 percent to P6.69 billion.

Revenues from the company’s overseas operations, most of which comes from Al Rushaid Construction Company (ARCC), EEI’s 49 percent owned entity in the Kingdom of Saudi Arabia (KSA), surged 67 percent to P243.52 million in 2011.

Among Al Rushaid’s projects include the additional works for the Southern Area Flare System Upgrade Project for Saudi Aramco; the National Chevron Phillips Ethylene Plant North Plot Project under JGC Arabia; the Saudi Aramco Manifa Project in Manifa, KSA also under JGC Arabia; the 4 Samco Acrylic Project under Samsung and the Saudi Aramco Mobil Refinery Clean Fuels Project under Worley Parsons.

Outside Saudi Arabia, EEI is doing the carry-over works for the assembly of the Piperack Modules for Exxon Mobil Chemical Asia Pacific under Stone & Webster Asia, Inc. for the Singapore Parallel Train Olefins Recovery Project at Jurong Island, Singapore; and the additional works for the Inco Goro Nickel Mining Project in New Caledonia. The remaining workable portions of these overseas contracts amount to P566.67 million.