Infrastructure-building boosted Megawide’s profits

CONSTRUCTION DEMAND Megawide’s total order book hit P48 billion as of end-June. — INQUIRER FILE PHOTO

The government’s push for infrastructure development buoyed the first- semester earnings of Megawide Construction Corp., whose strong construction business caused a 21-percent rise in profits to P438 million.

Megawide on Wednesday said total six-month revenues inched up by less than 2 percent to P11.4 billion. The construction business accounted for nearly the entire revenue pie at P10.9 billion.

READ: Megawide erases losses amid flurry of projects

“Construction has been a significant growth driver for the economy during the period as the government continued to push for infrastructure development, complemented by a more normalized operating landscape,” Megawide chair and CEO Edgar Saavedra said in a statement.

The company launched around P8.9 billion worth of projects in the January to June period, including a portion of the Metro Manila Subway System and real estate firm PH1 World Developers Inc.’s Modan Lofts Ortigas Hills.

The new projects brought Megawide’s total order book to P48 billion at the end of the first half. The company said this was worth up to three years of revenue.

PH1, its newly acquired property arm, booked P311.1 million in revenues during the period, mainly from its ongoing projects.

Last month, the company announced it was set to get a fresh P500-million loan from Ayala-led Bank of the Philippine Islands to fund the development of a house and lot project in Bulacan province.

Houses within the 4.1-hectare Northscapes are set to feature solar panels, tinted windows and insulated walls to reduce energy consumption.

READ: Megawide group lists third company on PSE

Megawide acquired PH1 from affiliate Citicore Holdings Investments Inc. for P5.2 billion last year.

Meanwhile, Parañaque Integrated Terminal Exchange (PITX) contributed P205.2 million in revenues from P191 million in the same period last year. The major transport hub likewise saw an average 156,000 in foot traffic in June, up from 100,000 a year ago.

Commercial segment occupancy at PITX climbed to 84 percent, while take-up of office towers improved to 37 percent. This includes government offices, transport services and travel agencies, Megawide said.

The company plans to spend up to P3 billion this year to fund its expansion plans and beef up the portfolio of PH1.

Of the total, P1 billion will be set aside for “transit-centric developments,” including PITX.

The remaining P2 billion will be utilized for the pipeline projects of PH1. INQ