EEI Corp., the construction arm of the Yuchengco family, said it plans to be more aggressive in pursuing large infrastructure projects in the country amid the current unfavorable developments in the Middle East.
EEI said in a regulatory filing it was intensifying its pursuit of large infrastructure, power and industrial projects in other industries in the Asia-Pacific region, especially in the domestic market in light of the unfavorable developments in its joint venture in Saudi Arabia.
The company cited falling oil prices, which could result in a slowdown of construction activities in the petrochemical industry.
EEI said it expected a robust performance in its domestic operations driven by buildings, large infrastructure and industrial projects in its pipeline.
“It foresees this to continue in the short to medium term, especially from high probability prospects that were being pursued as at the end of 2015. There is also optimism in the prospects and business opportunities outside the Philippines and the [Saudi Arabia], and the fruition of the development works being undertaken by its subsidiaries,” it added.
EEI’s unworked portion of existing contracts amounted to P45.4 billion as of end 2015, comprising of P36.2 billion in domestic projects and P9.2 billion in overseas jobs.
EEI in joint venture with Hyundai Rotem Co. of Korea in February bagged the engineering, procurement and construction of the P63-billion Mass Rail Transit Line 7 project.
The new railway system will connect Quezon City to San Jose, Bulacan, through a 22.8-kilometer commuter rail line.
Meanwhile, EEI noted an increase in the electro-mechanical and infrastructure projects it had contracted over the last few years.
“It is expected that there will be more projects in these segments in the medium term and the company continues to gear up to ensure its readiness to take on more of these types of work,” EEI said.
EEI said unit Equipment Engineers Inc. had several joint venture projects in the works, and its first significant investment, along with two Japanese companies, was expected to materialize by the second quarter of 2016.
EEI Construction and Marine Inc. expect to win more projects in the petrochemical sector, especially on plant expansions and upgrades, and new depots across the Philippines. Unit Gulf Asia International Corp. is also exploring new markets and job categories, especially in Asia.
Share price of EEI on Friday closed declined 2 percent to P7.25.
