Megawide Construction Corporation (Megawide) sustained the momentum of its construction business in the first six months of 2021, generating 43% higher revenues at almost P7.0 billion.
This resulted in a net income of P353 million for the first half and reversed the P303 million loss in the same period last year.
The construction segment, which is a critical component in pump-priming the economy due to its significant multiplier effect, remains a bright spot in the Company’s portfolio amid the ongoing pandemic, as activities were
unhampered despite the re-imposition of ECQ.
On a consolidated basis, the Company reported revenues of P7.6 billion, 18% higher than the previous year, buoyed by the strong construction performance, with landport and airport operations contributing revenues of P360 million and P237 million, respectively, during the period. Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to P1.6 billion and 11% higher year-on-year. Operating expenses were reduced by 7% due to conscious expense.
A lower net loss attributed to the parent company, amounting to P93 million compared with P290 million the previous year, was recorded as non-cash items affected the bottomline.
“We remain bullish for our construction segment as our primary growth driver in the coming years, as we slowly work towards global herd immunity to usher in the next normal and restart the economy. As such, we remain focused on the opportunities in this segment, especially in the infrastructure front, which will enable us to upskill and further sharpen our competencies,” said Edgar Saavedra, Chairman and CEO of Megawide.
Infrastructure projects as Megawide growth drivers
The Company submitted bids and is currently awaiting results the Metro Manila Subway Project (MMSP), where it partnered with Tokyu Construction and Tobishima Construction from Japan for Package CP-104, and for Packages 1
and 7 for the North-South Commuter Rail Southline (NSCR-South) with Hong Kong-based Chun Wo Construction.
In addition to these, the Company, together with an established Japanese player, is seriously evaluating securing the electro-mechanical and track works for the Malolos-Clark and Solis-Calamba stretches of the NSCR alignment.
Megawide is also fast expanding its transport-oriented development (TOD) portfolio, anchored on a hub-and-spoke model, with the country’s first landport, PITX, currently at the core. After successfully signing the joint-venture agreement with Cebu City for the Carbon Market Redevelopment, which has a vital integrated transport component, and advancing discussions with Baguio City for a potential landport location, the Company is in initial talks for a future Bus Rapid Transit (BRT) system in the Southwest area of Luzon.