EEI sees benefits from full foreign ownership in industry

YUCHENGCO-led EEI Corp. (EEI) said the construction sector is expected to benefit from the opening of the industry to full foreign ownership.

“The structural reforms that promote foreign direct investment such as the Public Services Act (PSA) and the EO (Executive Order) to adopt the Philippine Development Plan, that the government is trying to institute, have the potential to impact growth in the manufacturing, renewable energy, and logistics sectors,” Henry D. Antonio, chief operations officer of EEI, told the stock exchange on Thursday.

Mr. Antonio will serve as the company’s chief executive officer starting next month.

The implementing rules and regulations of Republic Act No. 11659, which amends the PSA, took effect on April 4. This law allows full foreign ownership in public services such as telecommunications, airlines, expressways, and railways.

Further, President Ferdinand R. Marcos, Jr. has also signed an EO adopting the Philippine Development Plan 2023-2028, which sets the country’s roadmap for economic recovery.

EEI said these present fresh catalysts that will drive growth and opportunities for construction services for both light and heavy industries.

The construction company said that it remains confident in the company’s future, but it will approach the year “with cautious optimism amid economic uncertainties in the global and domestic front.”

“The prospects remain positive for EEI despite potential headwinds in the property sector and delays in the implementation of government infrastructure projects as its market position allows the company to keep thriving amid a short-term environment with fewer new capital projects,” EEI said.

The company added that it will continue to pursue international opportunities to maximize its steel fabrication capabilities.

It also said that Al Rushaid Construction Co. Ltd. (ARCC), EEI’s joint venture with Al Rushaid Petroleum Investment Co., will bring numerous “growth opportunities” after winning more contracts from major engineering, procurement, and construction companies.

“Both ARCC and EEI’s domestic construction operation have undertaken a reorganization to improve commercial approach, internal systems and processes as well as project delivery,” Mr. Antonio said.

EEI added that its current bids for several domestic projects will bring revenue visibility for the company over a longer term.

At the local bourse on Thursday, shares in the company declined by two centavos or 0.74% to end at P2.70 apiece. — Ashley Erika O. Jose