MEGAWIDE POSTS BIG P616M LOSS
Megawide Construction Corp. has posted a hefty loss of P616 million for the first half of the year as it run smack into a runway of red ink with the COVID-19 pandemic.
That big loss, its first in its 16-year corporate history, compares with the P730.9 million profits it posted in June 2019 and the higher P1.219 billion in June 2018.
The company said in its disclosure of its financial highlights to the Philippine Stock Exchange (PSE) that the loss translates to EPS of minus 26 centavos against positive 21 centavos in June 2019 and positive 36 centavos in 2018.
Finance costs, according to Megawide, went up to P1.29 billion compared to the 2019 and 2018 finance charges of P814 million and P667 million respectively. The company had borrowed heavily to finance its Mactan Cebu International Airport project and the PITX.
Total liabilities of the company as of end June 30, 2020 amounted to P61.73 billion , of which current interest bearing loans and borrowings total P12.43 billion, trade and other payables P8.27 billion and contract liabilities, P5.09 billion. Other current liabilities amount to P353 million.
Total equity of the company amounted to P16.53 billion.
The company said in its discussion that “Interest - Bearing Loans and Borrowings - Non - Current increased by 1 % or by P495 million. The increase in long-term loans and borrowings was due to additional loan availments of the Parent(firm) from its newly issued corporate note facility. Proceeds were partially used to refinance existing maturing loans as well as for general corporate purposes.“
Megawide’s disclosure, which has red inks to show variances, include a discussion that “other than the impact of COVID there are no known trends or demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in increasing or decreasing Megawide’s liquidity in any material way.