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Friday, March 29, 2024

DMCI’s order book hit P42.4 billion in first quarter

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D.M. Consunji Inc. said Monday its order book increased to P42.4 billion in the first quarter of 2023, up 20 percent from P35.2 billion in the fourth quarter of 2022.

The contractor attributed the increase to the awarding of the South Commuter Railway Project, under contract package 02, which is a joint venture with Acciona Construction Philippines.

“DMCI’s participation in the joint venture is around 35 percent. In addition to construction revenues, we also expect to generate collateral business for our ready-mix concrete, equipment rental and steel fabrication units,” said DMCI president and chief executive Jorge Consunji.

Capital expenditure for the project is estimated at P28 billion which involves the construction of railway tracks and stations along España, Sta. Mesa and Paco. The project is expected to be completed in 4 1/2 years.

The DMCI order book declined by 9 percent from P46.7 billion in the first quarter of 2023 owing to the completion of several projects and descoping of North South Commuter Rail Contract Package 01, a joint venture with Taisei Corp. of Japan.

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Current obstructions prevented access, possession and handover of the NSCR construction site, which resulted in the exclusion of work valued at P7 billion from the project pipeline.

“We’re expecting equitable compensation for the descoping, which is a standard contract condition in construction projects. Negotiations are underway, and a resolution should be reached in the next few months,” said Consunji.

Aside from South Commuter Railway Contract Package 2, other projects in the DMCI order book are Dinapigue Causeway expansion, Xavier Junior High School Building, YCO Manila site early works and dredging and hauling of lagoon in the La Mesa Water Treatment plant.

DMCI reported a 26-percent decline in standalone net income of P263 million in the first quarter from P355 million a year ago on lower construction accomplishment and fewer projects in the pipeline.

It said while first-quarter order book showed signs for recovery, the company remained cautiously optimistic of the growth performance in 2023.
Increasing inflation rate, as well as price volatility and high interest rates, may affect the company’s performance for the year, it said.

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