Megawide profit slips 7% in Q2

MEGAWIDE Construction Corp. reported a seven percent decline in attributable profit for the second quarter of 2018, as the growth of the airport business tempered the slower performance of its construction unit.

In a regulatory filing, the listed engineering and infrastructure conglomerate said net income attributable to shareholders of the parent went down to P452.25 million from April to June, against the P487.02 million it generated in the same period a year ago.

Net earnings attributable to equity holders of parent is the net income minus the non-controlling interests.

Revenues dipped by five percent to P4.5 billion, as contract revenues — which accounted for 80% of total revenues for the quarter — slumped 12% to P3.63 billion. On a six-month basis, Megawide’s attributable profit was flat at P926.54 million. This followed a six percent decrease in revenues to P8.96 billion from the P9.5 billion it delivered in the same period a year ago.

Construction revenues for the first half went down by 11% to P7.36 billion, which the company attributed to “varying stages of construction of projects in the order book and scheduled start of construction of the new projects booked towards the end of 2017.”

Megawide booked P14.2 billion worth of new contracts in the first semester, constituting 59% of its full year guidance of P24 billion.

The private sector accounted for bulk of the new contacts at 86%, while 14% came from infrastructure projects including the engineering, procurement, and construction contract for Clark International Airport’s expansion.

“We are also continuing to boost our order book levels to ensure a more stable revenue pipeline in the next three years, at least,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said in a statement.

Meanwhile, the airport segment’s revenues went up by 14% to P1.32 billion in the first semester, as passenger volume increased by 12%. The Mactan-Cebu International Airport (MCIA) saw 5.8 million passengers for the first half, 14% higher than the 5.1 million passengers it serviced in the same period a year ago. Of this, 67% were domestic passengers while 33% were international passengers.

The company also opened 15 new routes in the first half, 12 of which were to destinations in China such as Beijing, Guangzhou, Shenzen, Hangzhou, Chengdu, Changsa and Nanjing and additional flights to Shanghai. MCIA now has a total of 34 domestic and 24 international routes, with 26 airline partners.

“Traffic growth in Cebu will be driven to a greater extent by our visitors from China. This is an opportunity that we want to maximize,” Mr. Saavedra said, adding that Cebu provides more convenience to travelers going to tourist destinations in Visayas and Mindanao.

Shares in Megawide gained 2.73% or 50 centavos to close at P18.80 each at the Philippine Stock Exchange on Wednesday. —