MEGAWIDE Construction Corp. swung to profitability as it reported a P353-million net income in the first half of the year on the back of higher revenues.
The company’s first-half profit is a reversal of the P303-million loss it incurred a year ago.
In a regulatory filing on Wednesday, Megawide reported an 18% rise in consolidated revenues to P7.6 billion carried by its construction business, which recorded a 43% increase in revenues to almost P7 billion.
Revenues from landport and airport operations in the first half accounted for P360 million and P237 million, respectively.
“The construction segment, which is a critical component in pump-priming the economy due to its significant multiplier effect, remains a bright spot in the company’s portfolio amid the ongoing pandemic, as activities were unhampered despite the re-imposition of the enhanced community quarantine (ECQ),” Megawide said.
Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose 11% to P1.6 billion.
“A lower net loss attributed to the parent company, amounting to P93 million compared with P290 million the previous year, was recorded as noncash items affected the bottom line,” Megawide said.
Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said the company remains bullish on its construction segment as the primary growth driver in the coming years.
“As such, we remain focused on the opportunities in this segment, especially in the infrastructure front, which will enable us to upskill and further sharpen our competencies,” Mr. Saavedra said.
Meanwhile, Megawide said it submitted bids and is awaiting results on the Metro Manila Subway Project, where it teamed up with Tokyu Construction and Tobishima Construction from Japan for Package CP-104, and with Hong Kong-based Chun Wo Construction for Packages 1 and 7 of the North-South Commuter Rail Southline (NSCR-South).
The company is also evaluating, together with a Japanese group, to secure the electro-mechanical and track works for the Malolos-Clark and Solis-Calamba parts of the NSCR alignment.
“Megawide is also fast expanding its transport-oriented development (TOD) portfolio, anchored on a hub-and-spoke model, with the country’s first landport, Paranaque Integrated Terminal Exchange (PITX), currently at the core,” the company said.
“After successfully signing the joint-venture agreement with Cebu City for the Carbon Market Redevelopment, which has a vital integrated transport component, and advancing discussions with Baguio City for a potential landport location, the company is in initial talks for a future Bus Rapid Transit (BRT) system in the Southwest area of Luzon,” it added.
On Wednesday, shares of Megawide at the stock exchange rose 1.81% or 11 centavos to finish at P6.18 apiece. — Revin Mikhael D. Ochave