EEI Corp. posted a 379-percent increase in consolidated net income in the first half, driven by stronger infrastructure projects and improved project profitability.
The construction firm reported a net income of P111.5 million for January to June, up from P23.3 million a year earlier. Net income attributable to equity holders of the parent company rose to P107.6 million from P23.4 million.Consolidated revenues increased 3 percent to P7.81 billion from P7.58 billion, mainly due to higher construction and services revenues.Construction revenues also grew 3 percent to P7.05 billion from P6.83 billion, largely due to stronger contributions from infrastructure projects, particularly the Cavite-Laguna Expressway and Metro Manila Subway projects.The increase was partly offset by lower production from industrial projects, most of which were nearing completion.Despite the modest revenue growth, gross profit surged 27 percent to P1.39 billion from P1.10 billion as consolidated cost of sales and services declined 1 percent to P6.42 billion.EEI attributed the improvement to a favorable project mix, recognition of revenue from approved claims and variations, and improved performance of infrastructure and industrial projects.Service revenue increased 11 percent to P717.9 million from P648.8 million, driven by the company’s power and energy subsidiaries. Merchandise sales, meanwhile, declined 60 percent to P40.1 million from P100.2 million.EEI’s share in the net earnings of associates and joint ventures also increased during the period, contributing to the improvement in overall earnings.However, finance costs and other charges rose 50 percent to P757.2 million from P504.2 million as interest expenses on short- and long-term borrowings rose.Total debt stood at P17.33 billion at end-June, down from P18.4 billion at end-2025 following principal repayments during the first half.Contract liabilities increased to P4.43 billion from P1.87 billion at end-2025, reflecting down payments and advances received for newly awarded and ongoing projects.These included the Philippine International Exhibition Center, Don Vicente Rama National High School, Metro Manila Subway architectural finishes, Vertica, Crown Residences and Metro Manila Subway stations.For the rest of 2026, EEI expects steady financial performance supported by its project pipeline and strategic partnerships.“Management views 2026 as a pivotal period for operational stabilization and disciplined execution,” the company said.EEI cautioned that near-term performance “may be tempered by ongoing cost pressures and the current funding environment.”The company expects a recovery to strengthen as its internal efficiency programs mature and its diversification strategies gain momentum.Over the medium term, EEI said it aimed to achieve a more balanced earnings profile, improved cash flow generation and a stronger financial position.The company on Thursday saw its shares rise P0.06, or 3.08 percent, to P2.01 each.
