EEI allots P480M for equipment upgrade

MANILA, Philippines - Yuchengco-led contractor EEI Corp. is upgrading its construction equipment this year through by a P480-million spending program.

The construction firm is focusing on improving its project delivery as it takes advantage of more infrastructure projects here and abroad, a top company official said.

“The company and its subsidiaries continue to invest in construction equipment and fabrication capabilities,” said EEI president and CEO Roberto Jose L. Castillo.

EEI allotted P483 million for capital expenditures on new equipment. Last year, the value of its property, plant and equipment surged 88 percent to P1.49 billion from a year ago.

“The company will continue to improve its construction methodologies and invest in new technologies that could enhance productivity,” Castillo said.

EEI generates revenues from local construction contracts and from foreign units EEI Corp. (Singapore) Pte. Ltd. and 49 percent-owned Al Rushaid Construction Co. Ltd (ARCC). It also earns from real estate sales of EEI Realty Corp.

Moving forward, EEI plans to take advantage of its footprint in construction projects locally and internationally.

“In the Middle East, EEI through ARCC will continue to capitalize on its reputation and strong presence in the Kingdom of Saudi Arabia in pursuing more construction projects,” Castillo said.

EEI has also gained access to markets in Singapore, New Caledonia and Qatar.

“EEI will also continue with its efforts in pursuing projects where it has already established itself as a reputable provider of construction services and will likewise develop its presence in other parts of the world,” he said.

At the start of the year, EEI has P21 billion worth of existing contracts. Of these, 57 percent are for domestic projects and 43 percent for foreign projects.

Locally, EEI is pinning its hopes on continuous growth of the business process outsourcing sector and mining industry.

Residential projects will also be on the rise, supported by the spending of families of overseas Filipinos, Castillo said.

“The government’s Public-Private Partnership project is also anticipated to boost the growth of the construction sector,” he added.

In the first quarter, EEI’s profits jumped 16 percent to P249.59 million from P214.92 million a year ago. The company lowered its expenses, offsetting an 11-percent decline in revenues to P2.9 billion.

Aside from construction, EEI also owns the 15-megawatt Tagum power plant and is one of the top shareholders in upstream oil firm Petroenergy Resources Corp.

PetroEnergy holds Service Contract (SC) 14-C2 in West Linapacan, Northwest Palawan and SC 51 in Eastern Visayas.