EEI losses widened despite revenue gains from construction projects 

Listed construction firm EEI Corp. widened its losses in the second quarter of the year, with increases in revenue not enough to cover losses from its overseas construction affiliate.

EEI said a major transformation and key steps have been implemented to improve overall operating efficiency and consequently improve the company’s financial margins. Both domestic and overseas construction operations have undertaken a restructuring to improve commercial approach, internal processes and project delivery, it added. 

Net loss in the second quarter widened to P255 million from P94 million in the year-earlier period, pushing first-half loss to P701 million. EEI posted a net income of P113 million in the first half of 2022.

Consolidated revenue, primarily from construction contracts, increased 24 percent in the second quarter to P3.88 billion. First-half revenue increased to P7.85 billion from P6.28 billion in the year-earlier period.

In the second quarter this year, EEI registered a P350 million loss from equity in associates and joint ventures. This was primarily due to the P526.8 million loss from Al Rushaid Construction Co. Recovery plans and measures to contain and limit further losses from Al Rushaid beyond the current year have started to take some traction with losses in this quarter significantly lower compared to the previous quarter. 

At the end of the second quarter, the company’s unworked portion of existing contracts remains strong at ₱47.40 billion. EEI is also preparing for a robust inflow of additional projects that it expects to secure and be awarded later in the year and in 2024.