Megawide posts 30% hike in net profit

Construction and engineering firm Megawide Construction Corp. boosted net profit last year by 30 percent to P1.92 billion as a double-digit rise in earnings from its construction and airport businesses sent revenues to a record high.

In a disclosure to the Philippine Stock Exchange, Megawide said consolidated revenues increased by 14 percent to P17.66 billion. Construction business remained the core revenue contributor, accounting for 89 percent of the total revenues while airport business contributed 11 percent.

“The construction segment is continuously outperforming its previous year’s revenue production … and has achieved a compounded annual growth rate of 15 percent. The company’s performance was attributed to its strong construction order book and the continuous stream of projects as a result of its unparalleled quality and level of work,” Megawide president Edgar Saavedra said.

Construction revenues increased by 13 percent to P15.79 billion. This growth was driven by private sector projects such as: Meridian Park phase 1 of Double Dragon Properties; Le Grand business process outsourcing cluster of Megaworld Corp., 8990 Tower Edsa and Tondo of 8990 Holdings; Landers Warehouse Balintawak & Otis of Southeast Asia Retail Inc., and Proscenium Lincoln & Lorraine Towers of Rockwell.

Total construction order booked as of end-2016 was at P38.49 billion.

In its second full year of operations and management, Mactan airport operator GMR-Megawide Cebu Airport Corp. (GMCAC) contributed a significant 47 percent to the consolidated net income in the amount of P902.5 million. This was up 80 percent from last year.

Megawide and partner GMR Infrastructure Ltd. took over operations of the airport in November 2014.