DMCI sees construction recovery in 2023

MANILA, Philippines — D.M. Consunji Inc. (DMCI), the infrastructure arm of DMCI Holdings Inc., is hoping to see the construction industry rebound in 2023.

DMCI president and CEO Jorge Consunji said there are many projects lined up for next year.

Overall,  he said, the environment remains challenging on the back of high inflation and rising interest rates.

The company already noted a slowdown in activities 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,” Consunji said.

DMCI bagged P45.3 billion worth of projects from  January to September  this year compared to the P49.3 billion order book at the end of 2021.

The moderate decline of eight percent in its order book is due to the slowdown in project bidding and contract awarding both from the public and private sectors.

Of the amount, P8.4 billion worth of contracts and P1 billion in change orders was recorded.

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

In the third quarter alone, DMCI bagged Contract Package 102 of the Metro Manila Subway Project, a primary pipeline project in Muntinlupa and a multi-specialty building in Manila.

DMCI’s nine-month net income reached P796 million, up one percent from the P785 million recorded in the same period last year.

In all, the holding company, DMCI Holdings, expects to sustain its strong growth momentum next year despite rising costs and higher interest rates.

DMCI Holdings chairman Isidro Consunji said  the power generation business is expected to pick up as the economy continues to recover and because of the supply-demand dynamics.

“For 2023, I think it will be more of the same,” he said.

DMCI Holdings reported a net  income of P27.6 billion in the first nine months of the year, breaking its full-year profit record of P18.9 billion, which was recorded in 2013.

The P27.6 billion, meanwhile, reflected a 105 percent increase from a P13.5 billion posted in 2021.