Listed construction group Megawide Construction Corp. said Tuesday its net loss in the first quarter narrowed sharply to P7 million from P192 million in the year-earlier period, aided by the deconsolidation of the airport segment and a double digit increase in group revenue.
Megawide sold its 33.3 percent stake in GMCAC in September to reduce its share of the losses in the consortium that redeveloped and manage the Cebu International Airport. The listed construction firm, however, still holds 33.3 percent of GMCAC.
Consolidated revenues for the first quarter rose 11 percent year-on-year to P4.4 billion. The construction business accounted for P4.3 billion, with a healthy order book that is expected to be completed within two to three years.
The orderbook includes Suntrust Home Developers’ Suncity West Side City project, 8990 Holdings, Inc.’s Urban Deca Ortigas and Cubao, Megaworld’s Gentry Manor, and the Department of Transportation’s Malolos Clark Railway Phase 1 Project – a joint venture project with Hyundai Engineering & Construction Co., Ltd., and Dong-ah Geological Engineering Company Ltd.
Landport operations, mainly the transport hub PITX, meanwhile, added P90.2 million to group revenue. Occupancy rates continue to be depressed due to the oversupply in the market, resulting in lower lease income compared to the first quarter of 2022
Direct costs rose 20 percent to P3.95 billion due primarily to higher cost of raw materials, services and labor. Fixed-costs and depreciation expenses associated with capacity building also increased.
Consolidated gross profit amounted to P402.2 million in 2023. The construction business contributed P402.9 million while terminal operations booked a loss.
Other operating expenses was higher at P413 million as the company prepares for various infrastructure and development projects that it will be undertaking such as the execution of CP104 of the Metro Manila Subway System Project worth P18 billion.
