Megawide income rises 55% in Q1
Diversified engineering firm Megawide Construction Corp., reported a 55 percent growth in its first quarter net income to P573 million from P370 million a year ago on the back of an upswing in construction activities during the period.
Consolidated revenues more than doubled to P5.966 billion during the period from P2.473 billion a year ago, with the company’s core construction business still contributing the bulk at P5.91 billion.
“The country’s property sector continues to be strong, buoyed by the growing demand for residential and especially office spaces primarily from the business process outsourcing (BPO) industry. We are proud to be a contractor- of- choice for prime Philippine property developers,” Megawide chief financial officer Oliver Tan said.
The increase in construction revenues – an improvement of 134 percent or P3.13 billion -- came from the new projects such as Phase 1 of the Meridian Park of DoubleDragon; Le Grand BPO Cluster Phase 1 and 2 of Megaworld; 8990 Tower in EDSA and Tondo of 8990 Holdings Inc.; Landers Warehouse Balintawak and Otis of Southeast Asia Retail, Inc.; and three solar farm projects.
“Megawide’s foray into contracts for renewable energy facilities is a testament to the company’s strategy of diversifying and enhancing our experience and expertise to be ahead of the curve,” Tan said.
The construction company also signed P2.5 billion worth of new contracts for the year’s first quarter. These new projects include Phase 2 of Meridian Park of DoubleDragon, 10 West and St. Moritz of Megaworld, and Cyberpark Phase 2 of the Araneta Group.
Revenues from operations of the Mactan-Cebu International Airport (MCIA), meanwhile, contributed P431 million.
In 2014, the company, together with Bangalore-based partner GMR Infrastructure Ltd., took over operations of the Mactan-Cebu International Airport in through the Aquino administration’s public-private partnership (PPP) route.
MCIA operator and Megawide airport subsidiary GMR Megawide Cebu Airport Corporation (GMCAC) boosted its own revenues 23 percent as a result of the 10 percent increase in passenger traffic compared to the same period in 2015.
Domestic and international flights increased nine percent and 13 percent, respectively, from March 2015.
Construction of MCIA’s Terminal 2 is currently ongoing and is expected to be operational by the end of June 2018, Tan said.
“Results from GMCAC’s operations show that we are on the right track in achieving the goal we have for Megawide to be a diversified engineering and infrastructure company,” he added.