Inflation softens infra boom — DMCI
The company expects formidable headwinds over the medium-term on persisting high inflation, rising interest rates and anemic demand for commercial and office spaces
Daily TribuneThe company expects formidable headwinds over the medium-term on persisting high inflation, rising interest rates and anemic demand for commercial and office spaces
DMCI Holdings Inc. president Isidro A. Consunji (left) receives the Management Association of the Philippines' Man of the Year plaque for 2022. MAP President former Public Works and Highways Secretary Rogelio ‘Babes’ Singson conferred the distinction. | Photograph courtesy of DMCI Holdings
Along with the slowdown in project bidding and contract awarding, major contractor D.M. Consunji Inc. also saw a moderate decline in its order book.
During the first nine months, the company recorded P45.3 billion in its order book, which was already 8 percent lower than the full-year 2021's P49.3 billion.
This was after P8.4 billion worth of contracts and P1 billion in change orders were recorded against P13.3 billion in construction accomplishments during the same period.
DMCI president and CEO Jorge Consunji noted that the company expects "formidable headwinds over the medium-term on persisting high inflation, rising interest rates and anemic demand for commercial and office spaces."
However, he said the company will bank on its public infrastructure projects to "provide some upside but it would still depend on the rollout strategy and spending priorities of the national government."
P796M profit in 3 quarters
On the upside, the company reported a nine-month net income of P796 million, a 1-percent uptick from P785 million compared to the same period last year.
In October, DMCI and Nishimatsu Construction Co. Ltd. of Japan were awarded the P21.21 billion Quezon Avenue and East Avenue underground stations and tunnels for the Subway Project or the Contract Package 102.
Nishimatsu Construction Co., Ltd., a leading tunnel contractor in Japan, has worked on more than 1,000 tunnels, including Singapore's National Library Board Building, London's Channel Tunnel Rail Link, and Hong Kong's Lap Kok Airport.
Contract Package 102 includes design, supply, installation, construction, testing, commissioning, and training, and it will take about 67 months to complete.
Consunji said DMCI hopes to get three more subway deals. The company is only awaiting the announcement of the Department of Transportation, likely in January 2023.
