Megawide returns to profit in 2023

MANILA, Philippines — Megawide Construction Corp. swung to profitability in 2023 on the back of strong revenues from its construction business.

Megawide reported a consolidated net income from continuing operations of P269 million in 2023, a turnaround from the P1.87 billion consolidated net loss incurred the previous year.

Revenues   stood at P18.6 billion in 2023, 26 percent higher than the previous year’s P14.8 billion.

Megawide said its strong topline was driven largely by the construction business, which delivered P18.1 billion in revenue, comprising 97 percent of the total.

This was complemented by improved landport operations and initial contribution from the real estate segment, which posted P348 million and P149 million, respectively.

“Our EPC (engineering, procurement and construction) business sustained a robust performance as progress on existing projects went as planned,” Megawide chairman and CEO Edgar Saavedra said.

“Based on our timelines, 2024 will continue to reflect increased completion and should translate to higher revenues based on the S-curve. In addition, our pre-cast and construction unit continued to build its external portfolio, helping boost performance from the construction segment,” he said.

Megawide’s new EPC projects signed in 2023 included Hotel 101 in Libis and the Lumbangan solar power plant, bringing total order book to P43.1 billion as of end last year.

For pre-cast and construction, the firm’s supply contracts as of end-2023 included horizontal infrastructure projects like the Candaba Viaduct, a portion of MRT-7, CP-104 of the Metro Manila Subway and a data center with a combined value of more than P2 billion.

For its landport business, foot traffic continued to increase, averaging 117,000 daily by the end of the year.

PH1 World Developers Inc., meanwhile, reported an initial contribution of P149 million, representing its share since the acquisition in July 2023.

“As our operations steadily deliver the results, we also need to manage the balance sheet and reduce our interest-bearing liabilities to ease the impact of interest expenses on our profitability. We are confident this two-pronged approach will help boost our margins and further improve our bottomline,” Saavedra said.