After laboring under the pandemic for most of last year, Megawide Construction Corporation (“Megawide” or the “Company”) recovered in the first three months of 2021. On a consolidated basis, the Company reported revenues of P3.72 billion and a net income attributable to the equity holders of the Parent of P2.9 million, signaling its return to a healthier performance. While the results still lagged from the previous year, the Company was able to turn in a positive bottomline due to aggressive cost rationalization and overhead management, resulting in lower operating expenses.
The performance was primarily driven by the construction segment, which generated revenues of P3.42 billion – 92% of the total – and delivered a net income of P168 million – 21% more than the same period in 2020. Megawide’s construction business steadily increased capacity and accelerated project completion since the economy reopened in June last year.
The Company is capitalizing on its advanced pre-cast technology and vertically-integrated platform in construction, seen as a major catalyst for the country’s economic rebound, and other support services to drive its performance in the coming years. In particular, Megawide is pivoting to and focusing on public infrastructure projects as it anticipates a dearth in private sector launches due to the pandemic, amid existing inventory.
Continued pivot to public infrastructure projects
“We are very excited to participate in the upcoming bidding for the Metro Manila Subway System and North-South Commuter Railway – South Line projects this year, where we can further expand our scope and leverage our advantages. In our ongoing Malolos-Clark Railway Project (MCRP) development, we were able to demonstrate how our construction service units can also benefit through separate contracts, like supply of concrete, provision of formworks, and equipment rentals,” said Edgar Saavedra, Chairman and CEO of Megawide.
Megawide, together with its consortium partners, has started the ground works on the MCRP and installed a mobile batching plant to supply concrete for the project. Temporary holding facilities are also being put up and several construction-related equipment will be provided through independent contracts.
“We hope to offer our expertise and wide array of solutions in this fast-growing infrastructure space, whether as an engineering contractor, a service or product provider, or both, to maximize our exposure and generate more business. We will also continue to be active in the residential and commercial and industrial segments to further expand our presence once the economy recovers,” added Saavedra.
New EPC projects, sustained landport operations bolster Q1
The Company secured two new projects in the first quarter to bring its order book to P66.1 billion. These include the design, supply, and build contract using pre-cast products for the Corral Village in Cebu and the development of a retail strip and theater mall at the West Side City in Paranaque to complement the ongoing Suncity hotel and casino complex, which Megawide is also undertaking.
Meanwhile, Megawide’s landport operations contributed P187 million in revenues and a net income of P45 million during the period. The Parañaque Integrated Terminal Exchange (PITX) continued to support social mobility and economic activity by serving as convergence point for medical, service, and other economic front-liners to and from several areas. On the other hand, operations at the Mactan-Cebu International Airport (MCIA) remained practically grounded, with passenger volumes only a fraction of pre-pandemic levels, and resulted in combined revenues of P115 million, including the merchandising segment. Airport operations are currently undergoing a recovery period from 2021-2023.
