Megawide suffers first loss in history

MEGAWIDE CONSTRUCTION CORP. said it suffered its first loss, shedding P349 million in the first semester, as its construction and airport businesses posted lower profits due to pandemic-related disruptions.

The listed firm on Monday said it recorded a 21% slump in total revenues to P6.44 billion, while overall earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at P1.45 billion.

It incurred its first loss due to interest expenses and non-cash charges amounting to P1.12 billion, largely from its Mactan-Cebu International Airport concession, which is “the first in Megawide’s history.” The airport operations recorded lower passenger volumes of 742,000 and 1.7 million for both international and domestic flights, respectively, from 2.1 million and 4.3 million a year ago.

Parañaque Integrated Terminal Exchange (PITx) insulated the company from its other weak performing businesses, namely, construction and airport, which were both affected by quarantine restrictions since mid-March.

The landport segment booked P599 million in revenues with a net profit of P255 million between January and June, making up 40% of Megawide’s EBITDA.

“Barely one year of full-blown terminal and commercial operations, we are starting to reap the benefits of this undertaking — not just for the Company but more importantly for our commuting public,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.

Meanwhile, the construction segment contributed P4.88 billion into the company, airport operations brought in P888 million, and the airport merchandising division chipped in P69 million.

Megawide said it is close to acquiring at least P10 billion worth of new contracts for its construction business, which currently maintains a “healthy” order book of P48 billion, in the coming months.

“The situation we are in is unprecedented but we remain in high spirits for the Company’s prospects moving forward, Mr. Saavedra said.

Shares in Megawide declined by 2.17% to close at P6.30 apiece on Monday. — Adam J. Ang

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Article and Photo originally posted by Business World last August 18, 2020 12:04am.