DMCI Holdings president Isidro Consunji
Local contractors like D.M. Consunji Inc. are enjoying massive orders for their services, thanks to the momentum generated by infrastructure building and private construction activities in the country.
D.M. Consunji, the construction arm of conglomerate DMCI Holdings, last year bagged new contracts such as for toll roads, power plants, high-rise towers and utilities worth a total of P16 billion, nearly twice the P8.2 billion it signed up for in 2016.
With the new contracts, D.M. Consunji was able to close the year with an order book of P25.4 billion, a 26-percent improvement from the previous year.
D.M. Consunji president and chief executive Jorge Consunji said 2017 “was a good year for us. We were able to keep a tight rein on our operating costs. The favorable settlement of pending claims and earlier than expected completion of some minor projects also contributed to our strong growth.”
With order books expected to grow further now that the government is rolling out one after the other programs under its banner “Build, Build, Build,” contractors like D.M. Consunji will have to brace for more cost pressures this year.
With higher interest rates and a weaker peso, margins from both the real estate and construction businesses would be reduced, said Isidro Consunji, president of parent conglomerate DMCI Holdings.
“In real estate, you can make up by increasing selling prices, but in construction, you don’t have flexibility,” Consunji said.
The construction boom across the metropolis has also jacked up wages of construction workers. Thus, developers like D.M. Consunji also have to spend more to be able to attract and keep its workers.
A bigger volume of projects, however, is seen to offset narrowing margins.
Among D.M. Consunji’s new projects are the Cavite-Laguna Expressway project of Metro Pacific group’s MPCALA Holdings, a petrochemical plant of JG Summit, Capitol Commons residential tower Maven of Ortigas & Co., Binondo residential tower Anchor Grandsuites of Anchor Land Holdings, Bued Viaduct and Roadway of Private Infra Development Corp. and the 105-megawatt conventional power plant of Sarangani Energy Corp.
Some of its major ongoing projects include Metro Manila Skyway Stage 3 of Citra Central Expressway Corp. (also known as the South-North Luzon Expressway connector road under the San Miguel group), Six Senses Resort (Phase 2) of Federal Land, Light Railway Transit 2 Masinag Stations of the Department of Transportation, City Gate of Ayala Land, The Imperium and The Royalton of Ortigas & Co. and Radiance Manila Bay (North and South) of Robinson Land Corp.
D.M. Consunji recorded a full-year net income of nearly P1.3 billion in 2017, up by 56 percent from the prior year.