Business World Online
Posted on November 21, 2011 10:28:38 PM
CONSUNJI-led DMCI Holdings, Inc. is eyeing more construction contracts for possible public-private partnership (PPP) road projects to boost its revenues next year.
“Although delayed, we believe the infrastructure development programs of the current Philippine government will inevitably materialize. As such, the company, through [construction unit] D.M. Consunji, Inc., is very much interested in the construction and engineering of these initiatives,” the conglomerate disclosed, as its nine-month construction revenues fell by 16% to P756 million from P903 million realized last year.
“The company believes it is well positioned to be a driver and a beneficiary of the country’s infrastructure progress,” DMCI Holdings added.
The PPP program, a major initiative being pushed by the present administration, has been hampered by the delay in the rollout of specific projects. Only the P1.96-billion, four-kilometer Daang Hari-South Luzon Expressway (SLEx) project is scheduled for bidding next month, with awarding set for next year.
“We’re looking at PPP projects, but so far there is nothing to bid for yet.
But we intend to bid for Daang Hari, that’s for sure,” said Victor S. Limlingan, DMCI Holdings managing director, in a telephone interview late last week.
Nevertheless, DMCI Holdings said it would welcome more contracts for elevated road construction, which is one of the company’s core competencies.
“In terms of construction bids, we can handle the building of LRT (light rail transit)-type, elevated projects. But all in all, LRT-type projects should help us lift our revenues for the following year. That’s what we’re good at. We’d like to focus on these projects such as flyovers and skyways,” Mr. Limlingan added.
In addition to Daang Hari, possible bids by DMCI Holdings may include the construction of the Ninoy Aquino International Airport Expressway and the NLEx-SLEx connector, Mr. Limlingan said.
Earlier this year, D.M. Consunji bagged the construction contract for the 135-megawatt coal-fired plant owned by South Luzon Thermal Energy Corp., a joint venture between Phinma-owned Trans-Asia Oil and Energy Development Corp. and Ayala-led AC Energy Holdings, Inc.
“Hopefully, this additional power-infrastructure contract along with others being eyed by DMCI [Holdings] will generate the much-needed lift in construction revenues and healthier margins,” DMCI Holdings said in its financial statement.
DMCI Holdings also said the 84.5-kilometer Tarlac-Pangasinan-La Union Expressway, which is currently under construction, is on track to begin initial operations in 2012. “We should be finished by the second or third quarter next year,” Mr. Limlingan said.
The conglomerate’s net income attributable to its equity holders was up by 10.37% in the third quarter this year to P1.756 billion versus P1.591 billion in year-ago levels, while revenues rose by nearly a quarter to P10.395 billion from P8.369 billion last year.
Third-quarter cost of sales and services, on the other hand, climbed by 21.61% to P7.693 billion from P6.326 billion the previous year.
“Despite a slide in general construction and the non-inclusion of the steel fabrication business, significant growth in the coal nickel and power segments along with the sustained improvement in the real estate and water businesses caused the growth in the consolidated bottom line,” DMCI Holdings said.
This brought the firm’s nine-month net income to P7.036 billion, a 25.8% increase from P5.772 billion in year-ago levels. Revenues gained 20.15% at P36.610 billion from P30.478 billion last year.
DMCI Holdings’ shares were unchanged at P37.90 apiece yesterday. -- Franz Jonathan G. de la Fuente
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