EEI Corp., the construction arm of the the Yuchengco Group, canceled a planned P0.40-per-share cash dividend to shareholders to ensure liquidity amid current economic conditions.
EEI said in a disclosure to the stock exchange Friday its board of directors approved the cancellation of a cash divided it announced on March 13 to protect the interests of shareholders, employees and other stakeholders from the COVID-19 pandemic.
“The corporation seeks to ensure that it has sufficient funds on-hand to address any contingencies that may take place due to the on-going pandemic and the economic uncertainties ahead,” EEI said.
“The company would like to assure its shareholders that this step is necessary and reasonable in order to ensure the continuity of the Company and return to profitable operations in the coming years,” it added.
EEI prior to COVID-19 outbreak had anticipated more projects in the coming years amid the booming construction industry government projects under the ‘Build, Build, Build’ program of the Duterte administration.
With the emergence of the global pandemic, however, EEI said the outbreak would hamper operations and create setbacks and delays for all construction companies and the businesses of its clients.
“In this challenging and difficult time, EEI Corporation is responding decisively with calculated measures to protect the welfare and interests of all its stakeholders; leveraging on its strength and depth from its 89 years of experience and expertise,” the company said.
EEI during the lockdown period paid the wages of all its workers to protect them and their families from going hungry and become.
EE used its construction capability to rapidly build and deploy COVID-19 quarantine areas and other medical facilities in cooperation with government and other private entities.
EEI reported a net income of P1.6 billion in 2019 with revenues reaching P23.6 billion.
The company attributed the strong performance to its robust performance in both domestic and international operations, complemented by internal system innovations and diversification programs.
Share price of EEI on Friday fell 3 percent to P5.08.