Construction boom hikes EEI profit 3-fold to P200M in 2006

Construction giant EEl Corp. said its net profit rose more than three-fold last year to P200 million on higher revenues owing to a booming construction market.

In a statement, EEI said revenues reached P5.26 billion last year compared with P4.17 billion in 2005. The company booked orders and contracts worth P12 billion in 2006 or 3.53 times higher than the previous year’s P3.4 billion.

"With our healthy orders book and a positive outlook, EEI is on the way to the next stage of its turnaround and growth," said EEI president Roberto Jose Castillo.

In view of the rosy prospects in the industry, EEI management has also upgraded its net income forecast for this year to P300 million.

EEI has become a major force in property development, with a range of premier projects that include The Residences at Greenbelt and three phases of Serendra of Ayala Land Inc.; the Fairways Tower of Philtown in Fort Bonifacio; and the GA 2 Tower of Globe Asiatique in Mandaluyong City.

Towards the end of 2006, EEI was awarded the general construction contract for the 60-story St. Francis Shang Towers of Kuok Properties, reputedly the tallest building in the country when completed.

The company also participated in key infrastructure projects — the new Iloilo Airport, the Subic-Clark-Tarlac Expressway, the NAIA Skyway Ramp 1 and 4 and the expansion packages of three major terminal station of LRT 1.

EEI likewise acquired various packages worth $180 million for the plant construction and fabrication and erection of furnaces of the Eastern Petrochemical Co.’s petrochemical facilities in the new Jubail Olefins complex in the Kingdom of Saudi Arabia.

Castillo explained that the new Middle East contract is one of the largest awarded in recent years to a Philippine contractor.

The company is also participating in the Inco Goro nickel project in New Caledonia where it is undertaking mechanical and piping works and structural erection of the modules and other related facilities.

EEI also acquired the $23-million subcontract for the civil, erection and electro-mechanical works for the Petro-Fluid Catalytic Cracker (FCC) project under Daelim of Korea for the Petron refinery in Bataan and the $22-million subcontract for the civil, structural, mechanical and piping works of Japan Gas Corp. for the Coral Bay nickel mining phase 2 project in Rio Tuba, Palawan.

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