DMCI reports 8% decline in secured contracts in Jan.-Sept. 2022

Engineering and construction contractor D.M. Consunji Inc. saw a decline in its order book or the amount of contracts it secured during the first nine months of 2022.

In a disclosure to the Philippine Stock Exchange on Thursday, parent firm DMCI Holdings Inc. said its construction arm posted P45.3 billion in order book in the January to September period, down 8% from P49.3 billion posted in the same period last year.

The company attributed the decline to the slowdown in project bidding and contract awarding both from the public and private sectors.

“We expect formidable headwinds over the medium-term on persisting high inflation, rising interest rates and anemic demand for commercial and office spaces,” said DMCI president and CEO Jorge Consunji.

“Public infrastructure projects could provide some upside but it would still depend on the rollout strategy and spending priorities of the national government,” said Consunji.

In the third quarter alone, DMCI Holdings said its construction unit bagged Contract Package 102 of the Metro Manila Subway project, a primary pipeline project in Muntinlupa, a multi-specialty building in Manila, among others.

DMCI posted a nine-month net income of P796 million, up 1% from P785 million year-on-year.—LDF, GMA Integrated News