Megawide earnings fall in Q2

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Megawide construction corp

MEGAWIDE Construction Corporation reported on Thursday its net profit attributable to shareholders of the parent dipped 1.4% to P487.02 million in the second quarter, despite higher revenues from contracts and airport operations.

This brought the diversified engineering conglomerate’s first-half attributable net income 6% lower at P927 million.

In a regulatory filing, Megawide said its consolidated revenues jumped 14% to P4.73 billion in the April to June period. Year to date, consolidated revenues slipped 6% to P9.5 billion.

Revenues from the construction business rose 11% to P4.1 billion in the second quarter compared to the P3.7 billion for the same period in 2016. However, construction revenues for the six-month period still declined 10% to P8.3 billion.

Among the new projects booked in the first half include Rockwell Land Corp.’s Edades Suites, Fort Bonifacio Development Corp.’s BGC 5th Avenue Apartments, Southeast Asia Retail, Inc.’s Landers Alabang and Arcovia, and the Link Bridge and Elevated Road in Mactan Cebu Airport Terminal 2.

On the other hand, revenues from airport operations surged 26% in the second quarter to P585.9 million,  bringing the first half figure 29% higher to P1.15 billion.

The company’s joint venture with Bangalore-based airport operator GMR Infrastructure Ltd. took over the operations of the Mactan-Cebu International Airport (MCIA) in November 2014.

Airport passenger traffic at MCIA went up 14% in the first half, driven by a 36% surge in international passenger traffic and 6% increase in domestic passenger traffic. Air traffic volume increased by 17% for domestic flights and 37% for international flights. 

In a statement, Megawide President and Chief Operating Officer Edgar B. Saavedra said the strong second quarter figures show the company can achieve its full-year net income target of P1.16 billion. In 2016, Megawide recorded a net income of P1.02 billion.

“On a consolidated basis that includes the earnings contribution from Megawide’s airport operations business, the company should breach the P2-billion mark for full year net income,” Mr. Saavedra said. — CRAG