EEI books record P35-B construction contracts

MANILA, Philippines - The construction boom in the Philippines and Saudi Arabia has boosted Yuchengco-led EEI Corp.’s construction contracts to a record P35 billion to be booked in the medium term.

The construction firm will continue securing more contracts, particularly those involving Public-Private Partnership (PPP) infrastructure projects, its top official said.

“EEI’s level of workable contracts hit the P35-billion mark, the highest in the history of the company,” the firm said in a disclosure to the stock exchange.

In contrast, the total backlog of the company, including that of its local and foreign subsidiaries and joint ventures, had a value of P28.04 billion in end-2013, 37 percent higher than its position in end-2012.

“Two-thirds of its current orders consist of domestic construction projects while the remaining one-third are foreign-based projects,” it added.

EEI recently signed a P9.9-billion contract with NEPC Power Construction Corp. to build a 3X135-megawatt coal-fired power plant for FDC Utilities at the Phivdec Industrial Estate in Misamis Oriental.

EEI president and CEO Roberto Jose L. Castillo said the contracts will be booked as revenues in the next two to three years.

“The economy is strong and it is good to have more infrastructure, not just buildings,” Castillo said.

Existing projects include high-rise residential and commercial buildings, infrastructure projects, industrial plants, wind farms and other power plant projects spread all over the Philippines and in the Kingdom of Saudi Arabia through joint venture firm Al Rushaid Construction Co. Ltd., EEI said.

Moving forward, the company plans to secure PPP construction contracts such as the P35.4-billion Cavite-Laguna Expressway, Castillo said.

Earnings of EEI slipped six percent to P915.68 million last year from P978.81 million in 2012. Revenues, derived from construction contracts, services, merchandise sales and real estate sales, sank by a fifth to P11.33 billion from P14.22 billion a year ago.

As of the end-2013, the company’s backlog, or portions of existing contracts that are still in progress, for domestic projects had a net selling price of P12.48 billion.