Tuesday, August 15, 2017

DM Consunji books new contracts worth P11.7B in first six months



August 14, 2017

DM CONSUNJI, Inc. secured contracts amounting to P11.7 billion in the first six months of 2017, more than twice the P4.5 billion worth of infrastructure, energy, building, and utilities and plants projects it had in the same period last year.
In a statement issued over the weekend, the construction arm of DMCI Holdings, Inc. (DMCI) said its order book stands at P26.8 billion for January to June, 4% lower than the P27.9-billion construction orders during the same period a year ago.
One of the newly signed projects is the Cavite-Laguna Expressway project of Metro Pacific Investments Corp.’s MPCALA Holdings, Inc. worth P7.2 billion. This covers the Laguna portion of the project spanning 18 kilometers.
The firm’s other projects for the semester are Anchor Grand Suites of Anchor Land Holdings, Inc., the Bued Viaduct and Roadway of Private Infra Dev Corp., and the Light Rail Transit Line 2 East (Masinag) Stations under the Department of Transportation. DM Consunji was also tapped by construction contractor JGC Philippines, Inc. for the civil works of a thermal power plant.
The company is currently the contractor for sections 1 and 2 of the Metro Manila Skyway Stage 3 project being undertaken by San Miguel Corp.’s Citra Central Expressway Corporation.
Its real estate projects meanwhile include Ayala Land, Inc.’s mixed-use development called Citygate inside the Makati Central Business District, Ortigas & Co.’s luxury condominiums The Royalton and Imperium in Pasig City, The Arete of Ateneo de Manila University, as well as 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,” DM Consunji President and Chief Executive Officer Jorge A. Consunji was quoted as saying in a statement.
Data from the Construction Industry Authority of the Philippines cited a 29% increase in government spending for infrastructure in 2016 to P185 billion, driven by the implementation of infrastructure projects under the Aquino and Duterte administrations.
Private construction, meanwhile, grew 9.5% to P596.9 billion amid the increased demand for high-rise residential and commercial buildings.
DM Consunji penciled a 65% increase in earnings during the first semester to P630 million, against the P393 million it booked in the same period a year ago. The company attributed the positive performance to improved operational efficiencies complemented by lower construction costs across its business units.
On the other hand, its parent DMCI reported a core net income of P7.6 billion for the period, up by 21% boosted by its energy, residential, and construction units.
Shares in DMCI shed 12 centavos or 0.76% to P15.68 apiece at the stock exchange last Friday. — Arra B. Francia

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