Megawide’s 9M2023 ₱333-M Net Income Reverses Last Year's Losses

Megawide Construction Corporation (“Megawide” or the Company) reported revenues of P15.6 billion in the first nine months of 2023 – a 47% increase compared to the previous year.

Megawide's consolidated net income amounted to P332.5 million, reversing the P970.4 million net loss recorded in the same period last year. I Photo: Megawide

Consequently, consolidated net income amounted to P332.5 million, reversing the P970.4 million net loss recorded in the same period last year.

Construction Segment

The construction segment experienced a 47% increase in revenues, reaching P15.2 billion, and contributed the majority of consolidated revenues at 97%. This performance aligns with the Company’s strategy of pursuing higher-value and longer-term projects to deliver more stable and higher income streams over the long run.

Edgar Saavedra, Megawide President and CEO, stated, “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 EPC segment.”

During the third quarter, new projects totaling P2.3 billion in the commercial and industrial space were secured, including the Hotel 101 in Libis and Citicore Renewable Energy Corp.’s Lumbangan Solar Power Plant in Batangas.

The total outstanding order book now stands at P42.1 billion, excluding the Company’s share in the MMSP. Approximately 56% of the projects are in the 0-20% completion stage, while 43% are in the 21-80% range, providing a significant balance for bookable revenues in the coming periods.

Landport Operations

Landport operations at the Paranaque Integrated Terminal Exchange (PITX) delivered 23% higher revenues year-on-year at P339.7 million, constituting 2% of consolidated revenues. Commercial occupancy remained healthy at 80%, with average passenger spending reaching P36.9 in September – a 61% increase from last year.

The office occupancy rates doubled to 65% as of end-September, despite challenges in the office industry.

Jaime Feliciano, PITX President, remarked, “PITX continues to serve as a key junction for commuters, through additional long-haul trips to various destinations across the country and as a strategic link to the EDSA Bus carousel, resulting in high passenger throughput of more than 106,000 daily as of September.”

Real Estate

Revenue from newly consolidated real estate operations amounted to P36.5 million for the period, representing two months’ share in the performance of recently acquired PH1 World Developers, Inc. (PH1) in July 2023.

The real estate segment is expected to contribute significantly to consolidated revenues in the next two to three years as new and existing developments reach payment milestones and increase construction progress.

In September, PH1 officially launched two new projects, Modan Lofts in Ortigas Hills, valued at approximately P8.7 billion, and Northscapes at San Jose del Monte, Bulacan, with an estimated value of P1.9 billion for Phase 1.

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