ABOITIZ Construction, Inc. (ACI) is aiming to grow revenues by 18% to P6.5 billion this year, as it taps new markets for expansion.
ACI President and Chief Operating Officer Albert A. Ignacio told reporters last week the company is expecting a revenue of P6.5 billion this year, up from P5.5 billion last year. By 2020, the goal is to grow revenues by 8-15% to P7-7.5 billion.
“In 2017, we reached P4 billion. Last year, we reached P5.5 billion. This year, I think we’ll hit P6.5 billion… Next year, we’re looking at P7 billion to P7.5 billion,” he said.
Mr. Ignacio noted the company’s growth is fueled by its expansion into new markets, about 40% of which are Japanese clients for petrochemical plants, industrial plants and power plants.
About 25% of the company’s revenues come from overseas projects, and the rest from shipbuilding and maintenance work for local clients.
“We are forecasting before the end of the year we will end with about another P6 billion or P6.5 billion (in) assured work for next year,” Mr. Ignacio said.
For 2020, the company is expecting higher revenues, as it bids on a cement plant project in Mindanao and another mining project in Alaska. It is also working on JG Summit Holdings, Inc.’s propylene plant in Batangas. While the company is projecting a continuous growth every year, Mr. Ignacio noted revenues are “still not big,” as there are untapped opportunities in government infrastructure projects.
“It could be bigger because of the PPP (public-private partnerships), BBB (Build, Build, Build program). Problema lang [Only problem is], government is very slow,” he said, referring to the slow movement of infrastructure projects due to obstacles in right of way acquisition. — Denise A. Valdez
