DMCI sees construction rebound in 2023

Order book anemic this year

The construction arm of DMCI Holdings Inc. recently saw a dip in its order book but expressed an optimistic view for next year with the further reopening of the economy.

D.M. Consunji Inc. (DMCI), in a recent statement, reported that its order book had declined by 8 percent to P45.3 billion during the nine-month period ended September.

The latest figure includes P9.4 billion worth of new contracts it had won. On the other hand, P13.3-billion worth of projects had been completed during the period. Its order book ended at P49.3 billion last year.

Its nine-month net income was nearly flat at P796 million.

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

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

For next year, the DMCI official said there were many projects lined up, but he declined to provide details yet.

Still, he hinted at making their entry into the data center business, which is seen as a growing industry given the accelerated shift to digital platforms.

“We are about to close [a deal] already,” he said. Consunji did not disclose further information.

DMCI is also open to pursuing public-private partnership projects.

He quipped, “As contractor, if it is a bid that we believe there is money to be made and within our expertise, why not?”

Recently, the construction company expressed interest to bid for three more contract packages (CP) of the Metro Manila Subway project.

DMCI won a P21-billion CP 102 back with its partner Nishimatsu Construction Co. Ltd in October. This involves the construction of Quezon Avenue and East Avenue underground stations and tunnel works.

Construction is targeted to start by May or June next year.