EEI posts P26.55-M Q1 income

Despite the decline in contract orders, EEI Corp. posted a net income of P26.55 million in the first quarter this year compared with only P1.33 million in the same period last year.

In a financial report filed with the Securities and Exchange Commission, EEI said its gross revenues went up seven percent to P664.5 million from P618.9 million.

Consolidated contracts, merchandise sales and indent orders, however, declined by 50.59 percent to P299.1 million.

Gross production increased by eight percent to P664.5 million from P616.7 million. Consolidated orders backlog, on the other hand, amounted to P3.6 billion as of end-March this year, which is equivalent to 16 months production.

EEI said the low work/contract backlog may have a negative impact on future construction revenues unless new orders are obtained by the third quarter at the latest.

Many companies continue to shelve capacity upgrading and other capital projects in view of political and security problems and the negative investment outlook.

Among the projects awarded to the company in the first quarter include liquid facilities expansion for Procter & Gamble Philippines Inc., various work packages for Intel Philippines under its small projects general contractor program, power system upgrade for Unilab, conversion to roof tank for Petron’s Bataan refinery, and 500 cubic meters water tank for San Miguel Corp.

As of end-March this year, EEI’s total assets stood at P5.6 billion, two percent lower than the P5.7 billion registered in the same period last year.

EEI earlier said it will set up a holding company that will apply for listing at the Philippine Stock Exchange. The new company will be listed by way of introduction through a swap of shares with EEI.

Intro listing refers to the listing of shares at the exchange without first undertaking an initial public offering.

Last year, EEI obtained the following projects in the domestic market: NAIA 3 Expressway and related road project, general construction works for the Esperanza Residences project of Ayala Land Inc., construction packages for SMC PET plants in Davao and San Fernando, and various construction work packages for Intel Phil.

Among the projects that were completed last year Include Landco’s Pacific Mall, the new Jollibee commissary, Unilab warehouse/distribution center and the EDSA Central Crossing Redevelopment project for Greenfield Development Corp.

For its overseas operations, the company continues to provide professional and skilled manpower personnel in various countries in the Middle East. As of end-2003, it has a total of 2,500 personnel assigned overseas.