Megawide Construction Corp. posted net income of P332.5 million over nine months this year to P332.54 million, a turnaround from losses of P970.42 million last year.
Revenue for the period proved 45 percent higher to P15.82 billion from last year’s P10.91 billion.
“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. 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,” Edgar Saavedra, Megawide president and CEO, said.
In the third quarter alone, the business booked a net loss of P30.06 million, narrower than last year’s P529.28 million. Revenue came in at P4.5 billion, 30 percent higher than last year’s P3.45 billion.
As for new projects, P2.3 billion worth of contracts in the commercial and industrial space were secured during the quarter, including Hotel 101 in Libis in Quezon City and Citicore Renewable Energy Corp.’s Lumbangan Solar Power Plant in Batangas. This brought the company’s total outstanding order book to P42.1 billion.
Most or 56 percent of the projects are 0 percent to 20 percent completion and only 43 percent are in the 21 percent to 80 percent completion range, providing the business a significant balance for bookable revenue in succeeding periods.
Landport operations at the Paranaque Integrated Terminal Exchange delivered 23 percent higher revenue year-on-year at P339.7 million and accounted for 2 percent of consolidated revenue.
Commercial occupancy remained at 80 percent, with average passenger spending reaching P36.9 in September, or 61 percent higher than last year. This surpassed the previous record of P35.5 in June last year.
“The trend is expected to improve further as new offerings, such as Tim Hortons and Robinson’s Easymart, open their doors to PITX patrons in the third quarter of the year, offering a more wholistic commuting experience,” the company said.
Office occupancy rates doubled to 65 percent as of September from 33 percent at the start of the year despite prevailing challenges in the office industry segment.
The company remains optimistic of its long-term prospects even with pressure on its operating environment as it explores strategic alternatives that will attract cycle-resilient businesses and support a more stable tenancy.
By next year, the LRT1 Asia World Station will be operational, enabling direct access to PITX. This will strengthen the facility’s value proposition as an office hub and as convergence point for workers and travelers alike.
Meanwhile, revenue from newly consolidated real estate operations totaled P36.5 million, representing two months’ share in the performance of recently acquired PH1 World Developers Inc. last July.
The segment is expected to contribute more significantly to consolidated revenue in the next two to three years as new and existing developments steadily reach payment milestones and boost the construction progress, the company said.
In September, PH1 launched two new projects in the vertical and horizontal spaces – the Modan Lofts in Ortigas Hills, worth approximately P8.7 billion, and Northscapes in San Jose del Monte, Bulacan, with an estimated value of P1.9 billion.
