EEI Corp’s first half net profit grows by 35% to P453M

MANILA, Philippines—The Yuchengco-led construction firm EEI Corp. grew its first-semester net profit by 35 percent to P453.1 million year-on-year as revenues from construction contracts and services surged by a double-digit level.

This brought EEI’s earnings per share for the first semester at P0.437 compared to P0.324 per share in 2011.

Consolidated revenues for the first half grew by 73 percent year-on-year to P6.55 billion, as on-going domestic construction projects were significantly more than the same period in 2011, the company said in a regulatory filing. As such, revenue from construction contracts grew by 83 percent to P4.75 billion from the same period in 2011.

The increase in revenue from services by 81 percent to P1.5 billion year-on-year was mainly attributed to its foreign subsidiary, EEI Corp. (Singapore) Pte. Ltd.

There was a 9 percent drop in equity in the net earnings of associate and joint venture in the first six months compared to the same period in 2011 but EEI said this would pick up towards the end of the year.

On the expenditure side, consolidated costs and expenses for the first semester also went up by 77 percent year-on-year to P5.9 billion, owing mainly to the costs related to construction contracts. This was partly a result of the timing of revenue recognition where the costs incurred in some early stage projects have not yet reached the progress milestone for recognizing its corresponding revenues.