Megawide makes profit in fresh audit amid construction biz boom

Engineering and infrastructure company Megawide Construction Corp. reported a turnaround in the first semester of 2021 as new building contracts remained a “bright spot” while its transportation businesses slowed.

In a stock exchange filing on Friday, Megawide disclosed a profit of P138.1 million, reversing a P289.6-million loss in the first six months of 2020. The report was audited by Punongbayan & Araullo.

In a previous unaudited report on Aug. 19, Megawide reported a loss of P92.8 million during the period.

In its latest financial disclosure, Megawide’s total revenues jumped 18 percent to P7.58 billion, fueled by new construction contracts.

These included housing projects in Cebu and the construction of a massive integrated casino along Manila Bay. It also won a government contact to build a portion of the 54-kilometer Malolos-Clark Railway Project.

Revenues for this segment alone reached P6.98 billion, up 44 percent, during the first semester.

“We remain bullish for our construction segment as our primary growth driver in the coming years, as we slowly work toward global herd immunity to usher in the next normal and restart the economy,” Edgar Saavedra, chair and CEO of Megawide, said in a separate statement on Friday.

“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,” he added.

The construction business offset the downturn in the Mactan-Cebu International Airport and Parañaque Integrated Terminal Exchange (PITX), segments that were suffering due to COVID-19 movement restrictions.

Megawide said airport operations slowed by over 70 percent to P235.01 million while the PITX landport shed nearly 40 percent to P360.05 million.

Megawide said air traffic volume remained at 10 percent of the prepandemic level although the company was “optimistic of a turnaround once the global vaccination program has been effectively rolled out.”

The PITX’s leasing segment also took a hit after offshore gaming operators that were renting offices saw their businesses disrupted by international travel bans.

Megawide said the PITX landport continued to serve commuters during the lockdown.

Article and Photo originally posted by Inquirer last September 4, 2021 5:12am and written by Miguel R. Camus.