Megawide net jumps 66% to P1.47B
Construction and engineering firm Megawide Construction Corp. grew its net profit last year at the fastest pace since it went public in 2011 as the first full-year operations of Mactan-Cebu International Airport (MCIA) added to the core construction business.
Megawide posted a 66-percent rise in net profit to P1.47 billion last year, it reported to the Philippine Stock Exchange Wednesday.
The growth in earnings was driven by a 16-percent expansion in the core construction business and the recognition of the first full-year earnings of its airport operations in Cebu.
Megawide’s construction business contributed 66 percent to total consolidated earnings at P973 million, while airport operation income from MCIA contributed 34 percent at P501 million.
In partnership with Bangalore-based partner, GMR Infrastructure Ltd., Megawide took over MCIA’s operations in November 2014 after winning a hotly contested public-private partnership (PPP) bidding.
Megawide went public in February 2011 with a net income of P750 million and has since grown by 14.5 percent on a compounded annual growth rate basis.
The increase in construction income last year was attributed to higher construction revenue of P13.96 billion, 42 percent higher than the level a year ago.
Megawide reported a higher percentage of completion of ongoing projects, including the DoubleDragon Plaza at the DD Meridian Park of Araneta Center Gateway Tower 1, The Proscenium by Rockwell, World Hotel and Residences Makati, Shangrila Salcedo Place, SMDC’s Fern Residences and the Philamlife Corporate Tower in Cebu.
Construction operating profit margin declined by 100 basis points to 11 percent from 12 percent in 2014 as a result of the contraction in gross profit margin due to tighter competition in pricing.
In the meantime, Megawide posted P1.48 billion in airport operation revenue from MCIA. This was attributed to strong aeronautical, commercial and rental revenues brought by a 15.5-percent increase in passenger traffic compared to the level in 2014. Doris Dumlao-Abadilla
