Consunji bags P11.7B worth of projects

By VG Cabuag - August 13, 2017

http://www.businessmirror.com.ph/consunji-bags-p11-7b-worth-of-projects/

D.M. Consunji Inc., the construction arm of listed firm DMCI Holdings Inc., was awarded infrastructure, energy, buildings and utilities and plants projects worth P11.7 billion during the first half of the year, more than double the P4.5 billion worth of contracts it bagged last year.

With the newly signed contracts, the company’s order book stands at P26.8 billion, which is 4 percent lower than the P27.9-billion order book from January to June last year.

Among DMCI’s newly signed projects are the Cavite-Laguna Expressway project of MPCALA Holdings Inc., Anchor Grand Suites of Anchor Land, the Bued Viaduct and Roadway of Private Infra Dev Corp., the Light Rail Transit 2 East (Masinag) Stations under the Department of Transportation and the civil works for a thermal power plant for engineering procurement and construction contractor JGC Philippines.

Major ongoing projects include Sections 1 and 2 of the Metro Manila Skyway Stage 3 project of Citra Central Expressway Corp., Citygate mixed-use development of Ayala Land, The Royalton and Imperium luxury condominiums of Ortigas and Co., The Areté of Ateneo de Manila University and NCCC Mall of LTS Malls Inc.

“We are seeing some uptick in infrastructure projects, but the construction growth is still primarily driven by the private sector. Hopefully, more government-led projects will go online this year,” DMCI President and CEO Jorge A. Consunji said.

On a stand-alone basis, DMCI recorded a net income P630 million during the first semester, a 65-percent increase, from P393 million during the same period last year. This was due mainly to improved operational efficiencies and lower construction costs among its business units.

According to the Construction Industry Authority of the Philippines, government-infrastructure investments increased by 29 percent to P185 billion in 2016, as the public sector moved to fast-track the implementation of infrastructure projects under the Aquino and Duterte administrations.

Meanwhile, private construction activities accelerated by 9.5 percent to P596.9 billion due to the increased demand for high-rise residential and commercial buildings.

DMCI Holdings, the listed unit, said its first-half core income reached P7.6 billion, up 21 percent, from P6.3 billion during the same period last year.

The growth was driven by the improved earnings contributions of Semirara Mining and Power Corp., DMCI Homes and its construction arm.

Including a one-time gain of P111 million for the partial divestment of its stake in Subic Water in March 2016, net income of DMCI Holdings improved 19 percent, from P6.4 billion to P7.6 billion.

“We had a very good first half. Our performance in the second half will likely be more modest due to the higher strip ratio of SMPC compared to the first half,” DMCI Holdings Chairman and President Isidro A. Consunji said, adding that it is on track to hit its full-year target of double-digit growth rate.