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2016 NEWS »D.M. Consunji bags P4.4 billion worth of contracts in 1st semester

D.M. Consunji bags P4.4 billion worth of contracts in 1st semester

Posted on August 15, 2016

 

THE CONSTRUCTION business of DMCI Holdings, Inc. has secured P4.4 billion worth of contracts in the first semester, keeping itself on track to netting around P650 million in earnings toward the yearend.

In a statement over the weekend, D.M. Consunji, Inc. (DMCI) said it bagged contracts for the Spectrum BPO Building, the City Gate mixed-use development of Ayala Land, Inc. in Makati City, a 50-million-liter water reservoir in Quezon City and two 23-megawatt gas turbine plants in Batangas, among others.

The newly contracted projects add to the company’s major ongoing undertakings, including the Metro Manila Skyway Stage 3, civil works for the Light Rail Transit Line 2 (LRT-2) East and several high-rise buildings. 

DMCI is looking forward to undertaking more construction projects, particularly in the public sector, amid a government thrust to accelerate investments in public infrastructure to amounts equivalent to as much as 6% of the country’s gross domestic product. 

“We believe that DMCI is well positioned to assist in the infrastructure renewal plan of the Duterte administration because of our track record in implementing complex and large-scale projects,” DMCI President Jorge A. Consunji was quoted as saying. 

The company has completed the Tarlac-Pangasinan-La Union Toll Expressway; LRT Line 1 North Extension through a joint venture with First Balfour, Inc.; South Metro Manila Skyway Stage 2; R10 to Tayuman Rail Line; Carmen Bridge; and Magat Bridge, among others.

DMCI intends to work next on infrastructure projects included in the government’s public-private partnership pipeline, particularly the construction and maintenance of the Regional Prison Facilities in Nueva Ecija under a P50.18-billion contract.

The company -- along with San Miguel Holdings Corp. and the Mega Structures Consortium led by Megawide Construction Corp. -- has passed the prequalification stage of bidding for the modern jail facility.

The proponent of the project, the Department of Justice, had wanted to auction the contract on April 20. It would later move the bid submission to August 25 pending the resolution of issues on the project site.

Mr. Consunji is banking on the construction firm’s ability to secure more projects as well as manage costs for a better financial performance this year, saying: “We will do better than last year [on] more projects and tighter controls and cost efficiencies.”

“We expect about between P600 to P700 million. Last year, we only reached around P350 million,” Mr. Consunji noted in a media briefing in Makati City on Aug. 10, with revenues expected to reach P14 billion or around the same amount recorded for 2015.In the first six months of the year, DMCI has booked P397 million in net earnings, a 19% year-on-year increase from P333 million. The improvement reflects the full recognition of cost overruns for a power plant project back in 2015.

“In 2015, we generated strong revenues but costs were recognized later. That is why our profit went up in the first half and when the cost was recognized in the second half, our profit dropped,” Mr. Consunji noted. -- Keith Richard D. Mariano

 

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