D.M. CONSUNJI, Inc.’s order book during the first quarter went up by 20% to P42.4 billion from P35.2 billion in the fourth quarter of last year, its parent firm said, attributing the growth to the awarding of the second contract package of the South Commuter Railway Project.
In a press release on Monday, its parent firm DMCI Holdings, Inc. said the project package involves the construction of railway tracks and stations along España, Sta. Mesa, and Paco in Manila.
The contract, which is under a joint venture with Acciona Construction Philippines, is expected to cost about P28 billion and is slated for completion after about four and a half years.
“[The company’s] participation in the joint venture is around 35%. In addition to construction revenues, we also expect to generate collateral business for our ready-mix concrete, equipment rental and steel fabrication units,” said D.M. Consunji President and Chief Executive Officer Jorge A. Consunji in a statement.
During the January-to-March period, the company reported a net income of P263 million, down 26% from P355 million due to lower construction accomplishments and fewer projects in its pipeline.
Year on year, the company’s first-quarter order book declined by 9% from the P46.7 billion reported the previous year due to the completion of several projects and the descoping of the first contract package of the North-South Commuter Rail (NSCR). The was a joint venture with the Japanese company Taisei Corp.
“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,” the company said.
Mr. Consunji added that the company is 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,” he added.
Within the company’s order book are projects which include the Dinapigue causeway expansion, Xavier School’s junior high school building, the YCO Manila site’s early works, and the dredging and hauling of a lagoon in the La Mesa water treatment plant.
D.M. Consunji is the construction arm of listed infrastructure and engineering conglomerate DMCI Holdings, which also has core investments in coal mining, water, off-grid power generation, and property development.
On Monday, DMCI Holdings’ shares went up by 1.35% or P0.13 to P9.77 apiece. — Adrian H. Halili