EEI Corp. suffered an attributable net loss of P2.05 billion in 2020, compared to a profit of P1.16 billion the previous year, due to reduced earnings from contracts during the pandemic.
EEI recorded P2.07 billion in after-tax losses in its annual filing to the local stock exchange on Monday. Last year, revenue from consumer contracts dropped by about 41% to P13.88 billion.
“The outbreak of COVID-19 (coronavirus disease) in 2020 disrupted the Group’s business,” the organization said, adding that the disruption involved a temporary halt in building operations during the intensified population quarantine.
It said that it had incurred extra development costs as a result of the government’s tight lockdown.
At the end of 2020, EEI had a backlog of ongoing contracts worth P60.4 billion, including P17.38 billion in ventures from Saudi Arabia-based Al-Rushaid Construction Co. Ltd. The backlogs were characterized as “stable and manageable” by the company.
“Despite the operational delays incurred by the COVID-19 pandemic, the backlog was sustained and will be realized when development activities resume,” the firm added, adding that it is also optimistic about its short- to medium-term prospects.
The company expects its local activities to perform well this year. “As demand begins to pick up, EEI expects an overall good result in its domestic operations led by the new buildings, infrastructure, electromechanical, and manufacturing projects in its pipeline,” it added.
According to the firm, it stands to profit when the government expands development programs under its “Build Build Build” initiative. It also stated that it has started to digitize the operations in order to improve operating efficiencies.
According to EEI, the company “continues to pursue markets outside of building and has taken measures to invest in fields such as modern logistics, which has been booming long before the pandemic struck.”
According to the firm, these diversifications “are intended to provide fresh growth opportunities and help future-proof the business.”