Construction and engineering firm Megawide Construction Corp. posted P1.37 billion in net profit attributable to equity holders of parent firm last year, mostly weighed down by the cyclic nature of the construction business but mitigated by a double-digit rise in airport earnings.
Consolidated net profit amounted to P1.8 billion in 2018, down 20 percent from the previous year but in line with the guidance provided at the start of last year, Megawide disclosed to the Philippine Stock Exchange on Wednesday.
Group-wide revenues fell by 21 percent to P15.11 billion for the year.
Construction revenues slowed down as a result of projects in different completion stages in the order book, with projects either winding down or in the early phases of construction.
Net income was likewise affected by one-time finance charges related to the impairment of disputed receivables.
But Megawide’s transport infrastructure business has gained traction and is now contributing more than 50 percent of net income.
Edgar Saavedra, Megawide chair and chief executive officer, said: “2018 was a landmark year for Megawide as we opened two flagship infrastructure projects, the Mactan-Cebu International Airport (MCIA) terminal 2 and the Parañaque Integrated Terminal Exchange.”
While net profit was affected by the cyclic nature of the construction business, cash flow as measured by earnings before interest, taxes, depreciation and amortization rose by 8 percent to P4.76 billion.
This was attributed to the strong performance of the airport business. —DORIS DUMLAO-ABADILLA