Construction company DM Consunji Inc. (DMCI) said its nine-month backlog fell due to the slowdown in project bidding and contracting in both the public and private sectors.
DMCI said its backlog at the end of September was down 8 percent to P45.3 billion from P49.3 billion booked at the end of 2021.
This is after last year saw 8.4 billion pesos worth of contracts and 1 billion pesos of change orders versus 13.3 billion pesos in works.
“We expect significant headwinds over the medium term from persistently high inflation, rising interest rates and weak demand for commercial and office space,” said DMCI President and CEO Jorge A. Consunji.
“Public infrastructure projects could offer some benefits, but it would still depend on the national government’s deployment strategy and spending priorities.”
In the third quarter alone, DMCI bagged, among other things, the contract package 102 of the Metro Manila subway project, a primary pipeline project in Muntinlupa, a multi-specialty building in Manila.
DMCI reported nine-month net income of P796 million, up 1 percent from the P785 million reported a year ago.
The company’s publicly traded parent, DMCI Holdings Inc., reported profit of 27.6 billion pesos for the period, double the 13.5 billion pesos last year and breaking its full-year profit record of 18.9 billion pesos in 2013.
The previous record came after DMCI Holdings posted a one-time gain of 8.4 billion pesos on the sale of some of its shares in Maynilad Water Services Inc.
Excluding a one-time gain of 1.2 billion pesos last year due to the reassessment of deferred taxes related to the Corporate Recovery and Tax Incentives for Enterprises Act and DMCI’s gain on land sales, consolidated core net income increased from January to September even faster, up 124 percent to P27.6 billion from the previous P12.3 billion.