The Market Monitor Minding the Nation's Business
Diversified engineering company Megawide Construction Corp. (Megawide) increased its first-quarter net income by 55 percent driven mainly by its core construction business.
Net income reached P573 million during the January to March quarter from P370 million last year.
Its consolidated revenues rose by whopping 119 percent to P5.91 billion, with core construction business still contributing the bulk at 93 percent.
“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,” said Megawide Chief Financial Officer Oliver Tan.
Construction revenues improved by 134 percent or P3.13 billion due to revenues generated 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 & Otis of Southeast Asia Retail, Inc. and three solar power 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 enhanced construction revenue was topped by P2.5 billion worth of new contracts for the year’s first quarter. The 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) contributed P431 million during the first quarter, indicating the positive impact of Megawide’s decision to diversify from its core construction business.
The company, together with Bangalore-based partner GMR Infrastructure Limited, took over operations of the Mactan-Cebu International Airport in November 2014 through the Public-Private Partnership (PPP) route. RIZA LOZADA