D.M. Consunji, Inc. (DMCI), the construction arm of DMCI Holdings, posted a revenue of Php 7.2 billion for the first half of 2018, driven by the performance of the building and infrastructure business units. This is 13% higher compared to the same period last year which was at Php 6.4 billion. This can be attributed to the increase in number of completed projects during the earlier part of the year.

The 1H 2018 net income is at Php 676 million, which is higher compared to Php 497 million during the same period last year. This was brought about by higher gross profit percentage of the business units due to late approval of variation orders already accomplished in the previous period.

Buildings grew their revenue by 48% this first semester, compared to the same period in 2017. This is due to more projects that have been completed during the first half of 2018, as compared to last year’s first six months. Better performance is expected from the business unit due to ongoing projects, as well as newly-awarded projects that will commence later this year. The building business unit also continues to actively participate in ongoing bids and negotiations. The company is confident that these developments will further strengthen the portfolio for the coming year.

Infrastructure, on the other hand, suffered a dip in its revenue by 9% compared to the same period last year, due to delays brought about by right-of-way issues. However, the recent development in the availability of right-of-way will help improve the company’s revenue for the balance of year. Furthermore, the ongoing bids and negotiations of privately funded projects, and the government’s rollout of the Build, Build, Build program, will help the company increase its order booking for next year.

The Energy business unit generated higher revenues this first semester compared to 2017 due to the commencement of the JG Summit Petrochemical expansion, which was awarded at the beginning of this year. The immediate resolution of government energy-related issues will improve the business unit’s order book.

Utilities & Plants business unit, on the other hand, also experienced a drop in revenue due to delays in the award of bidded projects earlier this year. The business unit is looking at improving revenues towards the end of 2018.

“Overall, we still maintain a positive outlook for D.M. Consunji, Inc. for the second semester of this year,” says President and CEO Jorge A. Consunji.

“We intend to be one of the major players participating in the rollout of infrastructure projects under the Build, Build, Build Program of the government, as well as in private construction projects.”

DMCI expects to end the year with better results compared to 2017 due to cost reduction programs, and through improved efficiencies in its operations. As of June 30, the company’s order book was at Php 29 billion, mostly in buildings and infrastructure, and these are likely to be higher by end of the year.