D.M. Consunji Inc. (DMCI) has recorded signs of demand recovery in the first three months of the year as its order book went up 20 percent quarter-over-quarter from P35.2 billion to P42.4 billion.
The company, in joint venture with Acciona Construction Philippines, was awarded the South Commuter Railway Project contract package 2.
DMCI said the P28- billion project involves the construction of railway tracks and stations on España, Sta. Mesa and Paco in Manila and will take four and a half years to complete.
“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 Jorge Consunji, DMCI president and chief executive officer, in a statement.
The company’s standalone net income for the quarter dropped 26 percent to P263 million from P355 million due to lower construction accomplishment and fewer projects in the pipeline. On a year-on-year comparison, DMCI’s order book declined by 9 percent from P46.7 billion owing to the completion of several projects and descoping of the North South Commuter Rail (NSCR) contract package 1.
DMCI said 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,” Consunji said.
Aside from South Commuter Railway Contract package 2, other projects in the DMCI order book include the 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. -Jed Macapagal
