EEI profit jumps 26% to P157 million in first quarter

MANILA, Philippines – Backed by strong earnings from its overseas operations, Yuchengco-owned construction giant EEI Corp. reported a 26-percent jump in its first quarter net income this year to P157.1 million.

The company said growth was achieved even as its domestic construction projects slowed amid a global economic recession.

Production from local construction contracts dropped 20 percent from P1.07 billion to P855.44 million. 

EEI said equity income representing its share in the income of its overseas affiliates reached P76.77 million or an increase of 49 percent from the previous level of P51.65 million.

Al-Rushaid Construction Co., EEI’s operating unit in Saudi Arabia, acquired a $192-million contract with JGC Corp. for the Saudi polymers project. 

EEI was also awarded a $12-million contract by Gama Qatar Co. under the Chiyoda-Technip joint venture involving fabrication and erection and electro-mechanical works for the new Qatargas 3 and 4 and onshore project.

Orders backlog from overseas projects representing the value of workable production from existing contracts was valued at P20.32 billion as of end-March this year. This backlog includes remaining works for the new ethylene plant of Eastern Petrochemical Co., Saudi Aramco for the flare tips project, the new Shuqaiq power and desalination plant of Mitsubishi Heavy Industries and a project in Qurrayah for the replacement of boiler tubes.

EEI also won a major package for the fabrication of piperack modules for Shaw Stone Webster Asia Inc. worth $57 million.

The company said it is confident that its performance on the domestic front will improve for the rest of the year given its slate of new projects. 

EEI obtained the general contract for the construction of the 18-story Acacia Grove Condominium Hotel in Alabang and additional packages for the construction of Ramp IV-C of the NInoy Aquino International Airport and the Villamor Skyway Interchange from the Department of Public Works and Highways. 

It also acquired the contracts for electro-mechanical works for the new Biscom Sugar Refinery in Negros and shutdown works for JGC

Corp.’s Coral Bay Nickel Mining project in Rio Tuba, Palawan.

Currently under construction are the 60-storey twin tower of St. Francis Shang Towers of Kuok Properties in Mandaluyong City, the 39-storey Mandarin Square Building in Binondo, the sub-structure and civil works for the GA Sky Suites of Globe Asiatique Realty Holdings Corp. in Quezon City, the Beacon tower project of Geo Estate Holdings in Makati City and Phase 2B of the Two Serendra Complex of the Ayala Group in Fort Bonifacio, Taguig.