EEI looks to bag P50B in new projects, infra deals
MANILA -The Yuchengco Group’s EEI Corp. wants to double construction orders to nearly P100 billion over the next year as it targets new private and public sector construction projects after getting new investors, including the family of House Speaker Martin Romualdez.
EEI, which booked a P700-million loss during the first semester of the year, said it was looking to join bids and potentially win about P50 billion worth of projects in the fourth quarter of 2023 up to 2024.
EEI had about P47 billion in construction orders at the end of the first semester of 2023.
“These prospective projects are scattered across light industry, as well as public and private infrastructure projects,” said EEI, which was controlled by the Yuchengco family before the sale of shares to new investors.
These include RYM Business Management, the privately-held company of Romualdez, a first cousin of President Marcos, that shelled out P1.25 billion to acquire a 20-percent stake in the listed construction giant last April.
The Yuchengco-led House of Investments sold an additional 14.3 percent stake to Chua-led Industry Holdings and Development Corp. this year.
House of Investments still owns 21 percent of EEI, the company’s latest financial filing showed.
The company noted that the Marcos administration’s infrastructure program would “spur growth in the construction sector where EEI remains to be one of the major players”.
EEI is also boosting investments in the business and building up its “technical training capabilities”.
“These initiatives are all in support of the expected influx of projects that will be executed by the company moving forward,” it said.
EEI recorded steep losses during the first semester of 2023 as gross profit sank 21 percent to P515 million as poor weather and lack of materials led to delays. Revenues grew 25 percent to P7.85 billion during the period.
During the period, it booked a P350 million loss mainly from its Al Rushed Construction Co. (ARCC) venture in Saudi Arabia.
“For ARCC, recovery plans and measures to contain and limit further losses beyond the current year have started to take some traction with losses in this quarter significantly lower compared to the previous quarter,” EEI said in its second quarter 2023 financial report.
