EEI to reallocate offering proceeds

THE board of directors of EEI Corp. has approved the reallocation of the balance of the proceeds from its follow-on offering which amounts to around P4.16 billion.

In a disclosure on Monday, the company the remaining proceeds will now be allocated to “general corporate and working capital for existing and future projects.”

It added that the move would provide the company “with enough agility and flexibility to deploy capital into the most value accretive uses” for its shareholders’ interest.

The balance was originally allocated for partial financing of future projects, capital expenditure for new equipment, and general corporate and working capital purposes.

The board approval was given on June 24, 2022 when the directors held their regular meeting.

EEI previously said that it sees itself to be in a “prime position” to grow this year as it projects the construction industry to be among the economy’s main growth drivers due to the government’s “strong push” for infrastructure development.

The listed construction company also said it plans to take advantage of the suppressed demand caused by the delayed projects during the pandemic.

“The reopening of the Philippine economy is in a full swing as mobility across the country continues to increase, already exceeding pre-pandemic levels while still under the lowest alert level 1 pandemic restriction,” EEI said.

The firm said its outlook is reflected in its first-quarter performance.

EEI earlier reported that its net income jumped by 53.2% to P209.14 million in the first quarter. Net income attributable to equity holders jumped by 55.1% to P210.63 million.

The profit growth was recorded despite consolidated revenues dropping by 13.4% to P3.16 billion, primarily due to delays in infrastructure projects.

On Monday, shares in the company rose by 0.62% or two centavos to close at P3.27 apiece.