Megawide Q2 income falls on lower revenues

MEGAWIDE Construction Corp. saw its second-quarter (Q2) attributable net income decline by 14.6% to P220.79 million on lower revenues for the period.

For April to June, the company’s total revenues decreased by 28.34% to P4.45 billion from P6.21 billion in the same period last year.

For the six months ended June, the company’s attributable net income fell by 2.73% to P434.79 million from P447.03 million a year ago.

Consolidated revenues for January to June dropped by 23.59% to P8.78 billion from P11.49 billion in the comparable period last year.

Broken down, construction operations accounted for the majority of the company’s revenues for January to June at P7.31 billion, followed by landport operations at P216.97 million and real estate operations at P1.07 billion.

“Based on our performance in the first six months of the year, we are on track to outpace our net income from the previous year. This is also partly driven by the increasing contribution from our real estate business, which is steadily emerging as a new growth driver,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.

The company’s gross expenses went down to P8.13 billion, marking a 24.9% decline from P10.84 billion.

“Other business segments are expected to complement our consolidated overall performance as we replenish our order book for EPC and Precast and Construction Solutions (PCS) from both external and internal clients,” Mr. Saavedra said.

As of end-June, the company’s construction order book stood at P37.7 billion, with new contracts amounting to P2 billion.

These new contracts include Towers 2 and 3 of PH1 World Developers, Inc.’s PH1 project; Modan Lofts Ortigas Hills; Citicore’s Lucanin Solar Power Plant; and battery energy storage systems for the Bolbok and Lumbangan solar plants.

At the stock exchange on Wednesday, shares in the company gained four centavos or 1.96% to close at P2.09 apiece. — Ashley Erika O. Jose