Megawide H1 net profit down 35%

Engineering and infrastructure conglomerate Megawide Construction Corp. saw a 35-percent year-on-year drop in first semester attributable net profit to P585.86 million due to slower contract revenue and higher airport depreciation and interest expenses.

For the second quarter alone, net profit fell by 20 percent year-on-year to P346.6 million but compared to the first quarter, this was 60 percent higher as construction started to recover while airport operations sustained growth.

In the second quarter, construction posted P3.6 billion in revenue, up 41 percent from previous quarter and about the same level as that in the same period last year.

The company expects to maintain this uptrend in the construction business.

Megawide reported strong airport operations, alongside preliminary contributions from its land port operations in the second quarter.

“We are continuously building a stronger and more stable portfolio for Megawide to even out the swings in our construction business … We are steadily positioning our company as a key player in transport infrastructure,” said Edgar Saavedra, Megawide chair and CEO.

For the first semester, construction revenue went down by 35 percent year-on-year to P6.2 billion. This was partly mitigated by airport operations, which grew revenue by 36 percent year-on-year to P1.8 billion.

Megawide has secured P9.8 billion in new contracts during the period. —DORIS DUMLAO-ABADILLA