Megawide Construction Corp. aims to breach the P1-billion net income mark this year as it books more revenues from ongoing development projects.
In a press briefing after the company’s stockholders’ meeting on Tuesday, company officials noted that, moving forward, the corporate thrust would be to move “beyond vertical” and “beyond Metro Manila.”
“We have already made significant inroads outside of our usual established territories. We have bravely gone out of our comfort zone of vertical high-rise projects in Metro Manila and now dipped our toes in the government’s much-vaunted public-private partnership projects, which include roads and bridges, power plants, airports, school buildings and mass housing,” said Megawide president Edgar Saavedra.
Megawide chairman Michael Cosiquien said the company had also diversified its revenue stream which, as of end-2011, was 90-percent reliant on residential development. From year to date, he said such ratio had gone down to 56 percent.
Most of the revenues to be recognized by Megawide this year will come from residential projects contracted by SM Development Corp. and the Filinvest group in Metro Manila.
But as part of its planned expansion of geographical footprint, the company recently bagged a P1.25-billion contract with Filinvest Land involving the redevelopment of a former prison site in Cebu City into a business process outsourcing hub.
Cosiquien said Megawide was feeling the impact of domestic economic expansion in the form of robust demand for office developments, which was why the company was able to bring down the share of residential business to the total portfolio.