Vol. XXII, No. 93 [ BusinessWorld Online ]
Wednesday, December 3, 2008 | MANILA, PHILIPPINES
YUCHENGCO-LED construction company EEI Corp. remains bullish about growth, as it pursues ventures in the mining, petrochemical and oil sectors overseas.
"While the management continues to exercise financial prudence and implement [cost-cutting] programs to manage the risks arising from the global financial turmoil and the anticipated slowdown in the construction market, EEI Corp. continues to tap opportunities to earn new orders and contracts," it said in a statement.
"The company will also continue to pursue other major mineral, petrochemical and oil refinery projects in the Middle East and other parts of the world," it added.
In July to September, EEI Corp.’s net income barely moved at P110 million. Profits in January to September, meanwhile, surged by more than three-quarters to P363 million.
EEI Corp. traced the growth to the pickup of its overseas construction operations, where half of its 18,000 workers are deployed.
"Our positive performance is fueled by the strategy to shift our business focus to overseas markets, particularly in the Middle East, where there is robust construction in the oil and gas, petrochemical and power sectors," EEI President Roberto Jose L. Castillo said.
On the domestic front, the company said it had won orders and contracts worth P2.2 billion in the three quarters ending in September. Among these is a P2.84-billion joint venture project with Korean Hanjin Heavy Industries and Construction Co. Ltd.
As a general contractor, EEI Corp.’s projects include The Residences in Greenbelt and Serendra 2 of Ayala Land, Inc.; GA 2 Tower of Globe Asiatique; and St. Francis Shang Towers.
The company is also involved in various infrastructure projects, such as the Subic-Clark-Tarlac expressway, the Ninoy Aquino International Airport-3 Skyway and the new Iloilo Airport. It is also building the 210-megawatt Mindanao coal-fired power plants in Misamis Occidental and a Unilab plant in Laguna.
Earlier this month, the Philippine Constructors Association noted that with property companies scaling down projects, government infrastructure projects in preparation for the 2010 elections would likely save the construction industry from a negative business environment.
The group said it expects construction activity involving new manufacturing and business process outsourcing facilities, as well as residential units, to slow next year. — K.J.R. Liu
