Megawide Construction Corp. said it incurred a net loss of P137.91 million in the first quarter, a reversal of its P174.06-million income last year, as the company recorded minimum revenues from its airport operations and other travel-related segments due to the quarantine restrictions.
Revenues fell 22 percent to P3.83 billion for the period from last year’s P4.96 billion. The company said its revenues for the first quarter is flat compared with the previous quarter but it expects the figure to increase in the succeeding quarters. These will come from its ticket contracts, such as Andrew Tan’s gambling resort Suncity Westside City in Parañaque and its share from the Malolos-Clark Railway Project joint venture.
A huge chunk of its revenues came from the construction segment at P3.42 billion, down 10 percent from last year’s P3.04 billion. It had a net income of P168 million from this segment, some 21 percent higher than last year, the company said.
Its airport segment, which contributed a mere 3 percent of the revenues, continued to struggle with just 10 percent of the pre-pandemic air traffic volume, but the company said it is optimistic of a turnaround once global vaccination has been carried out.
Airport revenues fell 86 percent to just P114 million for the period from the previous year’s P809 million.
Its landport business, which contributed 5 percent of the revenues, delivered more revenues of P187 million, some 35 percent lower than last year’s P287 million, mainly from office towers and commercial spaces.
“We are very excited to participate in the upcoming bidding for the Metro Manila Subway System and North-South Commuter Railway-South Line projects this year, where we can further expand our scope and leverage our advantages. In our ongoing Malolos-Clark Railway Project development, we were able to demonstrate how our construction service units can also benefit through separate contracts, like supply of concrete, provision of formworks, and equipment rentals,” Edgar Saavedra, the company’s chairman and CEO, said.
“We hope to offer our expertise and wide array of solutions in this fast-growing infrastructure space, whether as an engineering contractor, a service or product provider, or both, to maximize our exposure and generate more business. We will also continue to be active in the residential and commercial and industrial segments to further expand our presence once the economy recovers.”
The company secured two new projects in the first quarter to bring its order book to P66.1 billion. These include the design, supply and build contract using pre-cast products for the Corral Village in Cebu and the development of a retail strip and theater mall at the West Side City in Parañaque to complement the ongoing Suncity hotel and casino complex.
Article and Photo originally posted by Business Mirror last May 25, 2021 and written by VG Cabuag.
About Post Author
More Stories
Banks’ total assets up at P26.2 trillion end-June
Lamudi sees heightened developer confidence with rise in ad spending
Phase 1 of PHINMA’s Bacolod township to finish by next year