MANILA, Philippines - The Securities and Exchange Commission has approved the business registration of EEI Subic Corp., a new wholly-owned unit of construction giant EEI Corp.
Documents filed with the SEC show that EEI Subic has an initial authorized capital stock of P100 million, P99.99 million of which was subscribed by EEI.
EEI Subic will primary engage in the business of general contracting and specialty construction services, fabrication and production of equipment systems for property development and infrastructure sectors.
The new firm will be operating exclusively within the Subic Bay Freeport Zone.
EEI is a major player in the construction of the Subic-Clark-Tarlac highway, South Luzon Expressway NAIA III fly-overs, the New Iloilo Airport, the Casecnan Irrigation project, the Camanava flood control and Bohol irrigation projects and the LRT Line 1 expansion project
The company posted a net income of P291.62 million in the first half this year, up 15 percent from the same period a year ago, on higher gains in equity in the earnings of associates and overseas joint ventures.This translates to an earning per share of 28 centavos from 24 centavos earlier.
Equity in net earnings of associates amounted to P142.34 million, 30.8 percent higher than the year ago figure of P108.8 million.
Revenues, however, fell 28 percent to P3.31 billion, largely due to the 33 percent drop in production from domestic construction projects/contracts from P2.94 billion to P1.97 billion.
New contracts and orders obtained by the company during the period amounted to P1.94 billion, almost the same amount as in last year. Backlog representing the value of workable balance of contracted domestic projects of EEI as of June this year was computed at P2.59 billion.
EEI is participating in the P2.84-billion joint venture project with Hanjin Heavy Industries & Construction Co. Ltd. for the construction of Berth 6 of the Manila International Container Terminal of global port operator International Container Terminal Services Inc. (ICTSI).
EEI has a 30 percent stake in the project.
On the international front, Al-Rushaid Construction Co. (ARCC), EEI’s overseas joint venture company, bagged a $192-million contract with JGC Corp. for the Saudi Polymers project in Saudi Arabia.
The company was awarded by GAMA Qatar Co. WLL, a $12-million manpower services contract under the Chiyoda-Technip joint venture involving erection and electro-mechanical works for the new Qatar gas 3 and 4 onshore project in Qatar.