EEI profit jumps 81% to P215M in Q1

MANILA, Philippines - Yuchengco-led construction firm EEI Corp. jacked up its net income by 81 percent in the first quarter this year to P215 million on higher revenues from work contracts.

In a financial report submitted to the Philippine Stock Exchange, EEI said consolidated revenues surged 94 percent to P3.27 billion, with construction contracts growing 89 percent to P2.48 billion.

Meanwhile, revenues generated from services more than doubled to P744.5 million.

During the period under review, EEI won P4.31 billion worth of contracts, which include the Novotel Manila Hotel of Araneta Center Hotel Inc. in Quezon City, Green Residences of SM Development Corp. in Manila, Eastwood LeGrand 3 of Megaworld in Quezon City, and the Levels condominium of Filinvest Land in Alabang, Muntinlupa.

The company also bagged contract packages of Didipio process plant for Oceana Gold Phils in Nueva Vizcaya, the asphalt plant facility for Petron and the autocalve installation works for the Taganito project in Surigao del Norte.

Under construction is the P2.84-billion Berth 6 of the Manila International Container Terminal. Under a joint venture with Hanjin Heavy Industries & Construction Co. for global port operator International Container Terminal Services (ICTSI).

Overseas, EEI’s 49-percent owned Al Rushaid Construction Co. Ltd. is currently building the Samco Acrylic under Samsung, the Saudi Aramco Manifa project, and the Saudi Aramco Mobil Refinery clean fuels project.

As of end-March this year, EEI’s domestic backlog, which represents portions of existing contracts that have yet to be completed for local construction projects, had a net selling price of P14.24 billion.

The combined backlog of all overseas projects amounted to an equivalent of P8.32 billion, making the total backlog of the company worth P22.56 billion. This is 15 percent lower than the total backlog in the same level in 2011.

EEI said the government’s declaration of a more aggressive pursuit of Public-Private Partnership (PPP) projects could provide good opportunities for growth in many industries which may directly impact the construction industry.

The company is confident it can sustain its upward trajectory given the continued strong demand for office and residential space.