Construction bolsters Megawide’s H1 income

MANILA, Philippines — Sustained strong momentum of construction operations bolstered net income of infrastructure and engineering company Megawide Construction Corp. by 21 percent to P438 million in the first half.

Megawide’s revenues for the period reached P11.4 billion due largely from contributions from construction and the real estate segment.

“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. This benefitted our integrated operations, which sustained a strong start to the year and is expected to be a key engine for Megawide’s value creation model,” Megawide chairman and CEO Edgar Saavedra said.

Construction revenues reached P10.9 billion and contributed 95 percent to the consolidated amount during the first semester.

New projects during the period amounted to P8.9 billion, mostly from affiliate Megawide Construction Corp.-Citicore Construction Inc., representing several locations of Citicore’s solar power plants, CP-104 of the Metro Manila Subway System Project and PH1 World Developers Inc.’s Modan Lofts Ortigas Hills.

Megawide said these brought total order book to P48 billion as of end-June, which is estimated to be worth two to three years of revenue.

The manufacturing side of construction business representing the pre-cast and construction solutions (PCS) segment saw a 150-percent surge in revenue to P1.9 billion, contributing 17 percent of the total for the semester.

“Our PCS business is expected to be a strong contributor moving forward, especially with higher margins associated with it and significant economies of scale potential. We believe that the growing appreciation and application of our PCS products in infrastructure, residential and commercial developments will accelerate the unit’s income generation and boost its share to our construction business,” Saavedra said.

Newly consolidated real estate operations under PH1, meanwhile, yielded P311.1 million for the period, contributing three percent to consolidated revenues.

With continued growth in foot traffic, land port operations delivered revenue of P205.2 million, representing the balance of two percent to total consolidated topline.