Construction and engineering firm Megawide Corp. grew its net profit last year by 38 percent to about P1.4 billion, which the company attributed to higher contract revenues and increase in operating efficiency.
Megawide—which recently bagged in partnership with Indian firm GMR the hotly contested Mactan-Cebu upgrade that was bid out under a public-private partnership (PPP) framework—reported that gross revenues last year reached P10.88 billion or about a third higher than the previous year’s level.
“The bulk of the increase is due to the accomplishment of the company’s PPP school infrastructure project of Department of Education (DepEd) in 2013,” the company said in a regulatory filing.
Cost of construction stood at P9.1 billion last year, up by 33.6 percent from the previous year.
Operating expenses increased by 23 percent to about P338 million as the company spent to grow its operations.
Meanwhile, net billings in excess of costs on uncompleted contracts increased by 89 percent or P1.09 billion because of higher net revenue derived from new projects alongside lower costs incurred during the structural phase of the project compared with the finishing phase of the project.
Apart from the Cebu airport project and the two school infrastructure projects with DepEd, the Megawide-World Citi Consortium bagged a PPP project for the modernization of the Orthopedic Hospital bid out by the government last year.