Megawide swings back to profitability

MANILA – The sale of its stake in the Mactan-Cebu International Airport (MCIA) boosted the bottom line of Megawide Construction Corp. last year, allowing it to return to profitability.

In a disclosure on Monday, the listed company noted that its net income attributable to the shareholders of the parent company amounted to P3.58 billion last year, a reversal of P342.99 million in losses in 2021.

Total top-line figures last year, however, dipped by 1 percent to P14.84 billion due to lower revenues from land port operations.

The 2022 financial result, Megawide said, included “exceptional gains’’ arising from its divestment of GMR-Megawide Cebu Airport Corp., the consortium operating MCIA.

Last year, Megawide inked a P25-billion share sale with Aboitiz InfraCapital, allowing the latter to take full control of the Cebu airport by 2024.

The listed company, in a message to the Inquirer, said that it had received P5 billion from the transaction last year.

In addition to gain on sale, Megawide said its 2022 bottom line had benefited from terminated construction projects write-offs.

“The COVID-19 pandemic affected Megawide in multiple fronts, particularly in terms of our operations and financial position. Alongside these challenges were opportunities, which we believe will help us address most of these concerns,” Megawide chair Edgar Saavedra said.

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The article was originally published in Inquirer.NET and written by Tyrone Jasper C. Piad.