EEI bullish on local market
EEI Corp., the construction unit of the Yuchengco Group, is bullish on the local industry after order book reached P54.7 billion as of end-March 2017.
EEI said in a regulatory filing the P54.7-billion order book included P10.7 billion worth of unworked portion from Al Rushaid Construction Co. in Saudi Arabia, in which the company has a stake of 49 percent.
“This backlog of projects is healthy, and overall, EEI expects a robust performance in its domestic operations driven by buildings, large infrastructure, and heavy industrial projects in its pipeline. It foresees more projects from high-win probability prospects currently being pursued,” EEI said.
“There is optimism in the prospects and projects being carried out by the company‟s subsidiaries. With all these on-going initiatives against the opportunity canvass, the company remains optimistic of its ability to achieve sustained growth in the medium term,” it added.
The firm said private construction had remained steady, while public construction activity was expected to accelerate on increased government spending on infrastructure projects.
“The government has mentioned a target of over P8 trillion to be spent on infrastructure during the current administration’s 6-year term. The company sees this as a good growth opportunity since it is confident in its capabilities of undertaking such work,” EEI said.
EEI, meanwhile, is not too optimistic about its operations in Saudi Arabia as prices of crude oil were seen to continue at low levels in the short to medium term.
“In light of the falling oil prices which could result in a slowdown of construction activity in the petrochemical industry in the KSA, the company is intensifying its pursuit of large infrastructure, power and industrial projects in other industries and most especially, in the domestic market,” EEI said.
EEI launched a new scaffolding rental business in partnership with two Japanese firms.
JP System Asia Inc., a joint venture with EEI’s subsidiary Equipment Engineers Inc., Japan’s leading scaffolding and allied products rental company Sansin Sangyo Co. Ltd. and KYC Machine Industry Co. Ltd., a Japanese construction machine manufacturer, was launched in April.