Megawide reports P389-M loss in 2020

Megawide Construction Corporation reported an attributable net loss of P389 million last year, a 145 percent reversal from an attributable net income of P859.5 million in 2019, mainly due to its airport operations.

In a disclosure to the Philippine Stock Exchange, the firm said the loss was due to “non-cash charges, particularly depreciation, amortization, and financing charges largely associated with the airport business.”

The company reported a 36 percent drop in unaudited consolidated revenues to P12.9 billion last year from P20.1 billion in 2019 as operations were hampered by varying degrees of government mandated community quarantines.

Amid the adverse business impact of the pandemic, Megawide said its construction and landport businesses reported a combined net income of P324 million last year.

The construction business contributed P10.8 billion or 84 percent to total consolidated revenues. The gradual reopening of the economy by mid-May facilitated movement of people and supply chain, sustaining healthy activities.

“Unfortunately, we also had to reduce and re-deploy our manpower complement on suspended projects,” said Megawide Chairman and President Edgar Saavedra.

The combined impact of rightsizing and the conscious effort to manage expenses resulted in improved EBITDA margin for construction to 17 percent from 15 percent previously, and matched the previous high recorded in 2018, amidst present day pandemic costs.

Meanwhile, the Paranaque Integrated Terminal Exchange (PITX) continued to gain traction last year as revenues reached P902 million, accounting for 7% of the total. A net income of P222 million was reported and reversed the net loss in 2019.

Airport operations at Mactan Cebu International Airport delivered revenues of P1.11 billion and comprised 9 percent of total revenues. Total passenger count reached 2.7 million while total air traffic was confined to 26,544 movements, split into 20,514 domestic and 6,030 international flights.

Article and Photo originally posted by Manila Bulletin last April 15, 2021 3:52pm and written by James A. Loyola.