Business World

Megawide Constructi­on income jumps in Q3 as constructi­on contracts increase

- 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. —

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