EEI Nets P91.7M in First Quarter

May 15, 1998 PSE CIRCULAR FOR BROKERS NO. 1045-98 EEI Nets P91 . 7M in First Quarter EEI Corporation, a publicly-listed construction firm, reported a P91.7 million net income for the first quarter of 1998, a 100 percent increase over last year's P45.9 million. This was announced by EEI chairman and chief executive officer, Mr. Rizalino Navarro during its Annual Stockholders' Meeting yesterday, May 15. In spite of the negative business environment, Mr. Navarro expressed optimism that EEI is well on its way to reaching its P400 million projected income by the end of 1998. "Because of healthy orders backlog and aggressive pursuit of committed BOT projects and overseas contracts, we expect to stage a dramatic rebound from the P63.8 million earnings we posted last year," he said. The company the country's leader in industrial and infrastructure construction recorded first quarter consolidated gross revenues of P1.64 billion, up by 49 percent over the P1.1 billion in the same period last year. Construction contracts were registered contributing P1.5 billion of the total revenues. cdlex Mr. Navarro reported that EEI continues to have positive prospects despite the projected slower growth of the construction sector in 1998. EEI has projected a P400 million after tax net income in 1998 on expectations of sustained growth in new orders as well as foreign exchange gains from its US Dollar denominated local and overseas projects. It booked forex losses last year from its foreign exchange liabilities, which led to 1997 income decline. It recorded consolidated orders backlog of P7.46 billion at the end of the first quarter, which is equivalent to 12 months production. "It acquired last year high budget high rise property projects whose aggregate value now accounts for 40% of its total orders. These projects will sustain EEI over the next one-and a-half to two years." he said. He disclosed that in the first quarter it acquired contracts for the construction of the P760-million Linden Suites Project in Ortigas Center, the Philips semi-conductor integrated circuit plant in Laguna; and, the Wrigley's chewing gum plant in Rizal. It was also awarded the construction of the superstructure of the prestigious P5 billion RCBC Plaza Twin Towers in Makati. Early this year, the company committed to invest in a new joint venture with Thyssen Hunnebeck of Germany for the marketing and manufacture of formworks in the Philippines. Thyssen Hunnebeck is Europe's leader in the production of scaffoldings, shorings and formworks with operations in 40 countries around the world. cdt Mr. Navarro added that EEI is leveraging its established position in the industrial and infrastructure construction industry and its long-standing relationships with global players to deepen its market penetration. "Projects on these markets are fairly stable with committed financing and are denominated in US Dollars, which give us a hedge against currency fluctuations." he said. EEI has participated in 40% of all BOT and flagship baseload power projects, 80% of expansions and rehabilitation projects of cement manufacturers and new plant construction and expansion projects of all the country's petroleum companies