Megawide bounces back, posts P332M in 9-month profit

MANILA  -Tycoon Edgar Saavedra’s Megawide Construction Corp. bounced back during the first nine months of 2023 as net income hit P332.5 million, reversing losses of over P970 million during the same period last year.

Revenues from January to September this year also soared 47 percent to P15.6 billion amid the strong rebound in construction.

“Our growth trajectory remains intact, with our pursuit of big-ticket infrastructure projects, like the Malolos Clark Railway Project and soon the Metro Manila Subway, and high-value commercial developments, such as the Westside City Resorts Complex, materializing,” Saavedra, the company’s president and CEO, said in a statement on Wednesday.

“We are confident that over the long-term, this direction will unlock a strong and steady earnings momentum for the [engineering, procurement and construction] segment,” he added.

Construction alone accounted for 97 percent of Megawide’s revenues. The segment grew 47 percent to P15.2 billion during the nine-month period.

Megawide also bagged P2.3 billion worth of new contracts for commercial and industrial projects, boosting its construction order book to over P42 billion.

Meanwhile, the company’s newly-acquired business, PH1 World Developers, booked revenues of P36.5 million.

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“The segment is expected to contribute more significantly to consolidated revenues in the next two to three years, as new and existing developments steadily reach payment milestones and increase construction progress,” Megawide said.

Its transport and leasing business via the Paranaque Integrated Terminal Exchange (PITX) saw revenues grow 23 percent to nearly P340 million on robust commercial occupancy. It added that office occupancy rates at the project doubled to 65 percent as of end-September from 33 percent at the start of the year.

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“PITX continue to serve as a key junction for commuters, through additional long-haul trips to various destinations across the country and as a strategic link to the Edsa Bus carousel, resulting in high passenger throughput of more than 106,000 daily as of September,” PITX president Jaime Feliciano said in the statement on Wednesday