Tycoon Edgar Saavedra’s Megawide Construction Corp. saw a financial turnaround during the first semester of 2023 after it began selling down its stake in the Cebu international airport project while construction revenues rose.
From January to June this year, Megawide’s net income reached nearly P363 million, reversing a P441-million net loss during the same period last year, after the airport business was deconsolidated from its books following the partial sale to the Aboitiz Group. Recurring earnings also rose 4.3 percent.
“All in all, we are confident of sustaining the momentum for the remainder of the year,” Megawide president and CEO Edgar Saavedra said in a statement.
Megawide noted that total revenues surged 52 percent to P11.2 billion. Construction accounted for the bulk at nearly P11 billion. The Parañaque Integrated Terminal Exchange (PITX), a land transit hub, contributed P191 million.
“Construction is on its way to recovery and we are starting to see it,” Saavedra said.
Megawide said its construction order book, an indicator of future revenues, ended the period at P50 billion, with most of the contracts still in the early stages of construction. The PITX also saw average daily foot traffic reach 100,000 as of end-June this year.
The engineering and construction firm is also diversifying into property development through the recent acquisition of affiliate PH1 World Developers Inc.
“Our property development arm, PH1 World, will be a significant contributor to our consolidated performance moving forward,” Saavedra said. INQ