EEI Corp. said it swung to a net profit of P831.75 million in 2017, aided by a one-time gain from a land sale as well as contributions from its energy investments.
The Yuchengco group’s construction company rebounded from a net loss in 2016 of P847.70 million.
Gross revenue was P14.92 billion in 2017, up 1%.
The company said revenue from construction contracts fell 1% in 2017 due to slow progress of major infrastructure projects, due to difficulties in obtaining right-of-way.
Other businesses posted more substantial revenue gains led by services, which rose 18% to P985.25 million.
“Sales of services grew by 18% with an expansion in the supply of workers by Gulf Asia Manpower Services, Inc. (GAMSI). Sale of goods through Equipment Engineers, Inc. (EE) increased by 28%,” the company said in its annual report.
Real estate sales through subsidiary EEI Realty Corp. increased by 120% to P43.61 million after the sale of socialized housing units in Royal Parks at Grosvenor Place in Tanza, Cavite and some units in Suburbia East, Marikina City.
The company sold land in Batangas for P401.76 million, and took in its equity share of earnings from investments in PetroSolar Corp. and PetroWind Energy Inc. amounting to P118.18 million. Equity in net earnings of associates and joint ventures reversed after a year-earlier loss of P1.32 billion.
PetroWind and PetroSolar are subsidiaries of PetroEnergy Resources Corp. (PERC), also a member of the Yuchengco group.
Direct costs rose 1% to P13.10 billion, mainly due to higher expenses incurred by GAMSI, as salary expenses increased due to the need to maintain standby workers for certain projects being completed.
In 2017, EEI completed a total of 11 domestic projects while Al Rushaid Construction Co., Ltd. (ARCC), its joint venture in Saudi Arabia, completed seven major projects.
In the Philippines, EEI completed Green Residences along Taft Avenue in Manila; Beacon Tower 3 of New Pacific Resources Management, Inc. in Makati City; the enhancement of the North Luzon Expressway (NLEX) and the Subic-Clark-Tarlac-Expressway (SCTEX); and the Ninoy Aquino International Airport (NAIA) Ramp 4 widening of Vertex Tollways Development Incorporated and San Miguel Holdings Corp., in Pasay City.
The company has a positive outlook for the year given the government’s infrastructure push.
“The company sees this as a good growth opportunity considering its competitive position among companies involved in infrastructure construction as well as its good relationships with foreign contractors,” EEI said.
EEI fell P0.08 or 0.66% to P12.10. — Patrizia Paola C. Marcelo

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