Me­gaw­ide Con­struc­tion in­come jumps in Q3 as con­struc­tion con­tracts in­crease

Business World - - CORPORATE NEWS - Arra B. Fran­cia

ME­GAW­IDE CON­STRUC­TION Corp.’s at­trib­ut­able profit jumped by 41% in the third quar­ter, fol­low­ing in­creased con­struc­tion con­tracts along­side higher pas­sen­ger vol­ume in its Cebu air­port oper­a­tions.

In a reg­u­la­tory fil­ing, the en­gi­neer­ing con­glom­er­ate re­ported net in­come at­trib­ut­able to the par­ent stood at P455.75 mil­lion in the July to Septem­ber pe­riod, higher than the P322.47 mil­lion in the third quar­ter of 2016.

Rev­enues for the pe­riod grew by a third to P4.76 bil­lion, the bulk of which came from con­struc­tion con­tracts.

This brought Me­gaw­ide’s nine- month at­trib­ut­able profit to P1.38 bil­lion, up 6% year on year, on the back of a 4% in­crease in rev­enues to P14.26 bil­lion.

With this, Me­gaw­ide said its bot­tom line is ex­pected to reach over P2 bil­lion for the full year. In 2016, Me­gaw­ide’s con­sol­i­dated profit stood at P1.92 bil­lion.

“The com­pany re­mains to de­liver strong earn­ings per­for­mance and is poised to achieve the 2017 full-year guid­ance of P2.16 bil­lion,” Me­gaw­ide said.

Con­struc­tion rev­enues ac­count for bulk of the com­pany’s rev­enues at 87% or P12.44 bil­lion, which the com­pany at­trib­uted to the progress it has achieved with on­go­ing projects. This in­cludes Rock­well Land Corp.’s Edades Suites, Fort Boni­fa­cio De­vel­op­ment Corp.’s BGC 5th Av­enue apart­ments, and sev­eral projects un­der Zenith Foods Corp., among oth­ers.

Me­gaw­ide also noted it has signed its big­gest sin­gle project dur­ing the pe­riod — mass hous­ing de­vel­oper 8990 Hold­ings, Inc.’s Ur­ban Deca Homes Or­ti­gas. The project has a value of P14 bil­lion.

“New con­tracts con­trib­uted to the rev­enue growth for the year and will pro­vide rev­enue sup­port in the next two years,” Me­gaw­ide said.

For its air­port seg­ment, Me­gaw­ide said oper­a­tions of the Mac­tan-Cebu International Air­port’s ( MCIA) earn­ings con­tri­bu­tions went up 7% to P811.16 mil­lion for the third quar­ter.

Me­gaw­ide at­trib­uted the growth of its air­port business to the in­tro­duc­tion of new air­lines and routes both lo­cally and in­ter­na­tion­ally, con­sist­ing of 22 international and do­mes­tic air­lines ser­vic­ing 33 do­mes­tic and 16 international destinations. This in turn pro­duced a dou­bledigit in­crease in pas­sen­ger vol­umes.

The com­pany looks to at­tract more air­lines into MCIA by invit­ing tour op­er­a­tors in China this November to pro­mote tourism in Cebu.

Pas­sen­ger vol­ume is fur­ther ex­pected to grow as it fin­ishes con­struc­tion of the MCIA’s new pas­sen­ger ter­mi­nal by June 2018. The ex­pan­sion is slated to bring the air­port’s to­tal ca­pac­ity to 12.5 mil­lion.

Shares in Me­gaw­ide were up 0.75% or 14 cen­tavos to P18.80 apiece at the Philip­pine Stock Ex­change on Tues­day. —

Newspapers in English

Newspapers from Philippines

© PressReader. All rights reserved.