EARNINGS of Megawide Construction Corp. climbed 3% in the first quarter as its construction and landport segments generated strong revenues.
In a disclosure to the stock exchange Friday, the listed engineering company said it booked an attributable net income of P233 million in the three-month period, up from P227 million a year ago.
Total revenues jumped 42% to P5.06 billion, on the back of a 52% increase in construction revenues to P3.91 billion. Revenues from operating landports, particularly the Parañaque Integrated Terminal Exchange, likewise surged to P287 million from P20 million last year.
These offset the 10% revenue decline to P803 million from airport operations and 24% revenue drop to P65 million from airport merchandising. The company said the slower performance of its airports business is attributed to 21% lower passenger volume as local and international travel bans were imposed at the onset of the coronavirus disease 2019 (COVID-19) pandemic.
“We are building on the strong performance of all our segments for the full year of 2019 and the first quarter of this year,” Megawide Chairman and CEO Edgar B. Saavedra said in a statement.
“Moving forward, while we anticipate challenges created by the COVID-19 pandemic, we are also primed to take advantage of the new opportunities it has created,” he added.
Megawide said it is looking to participate in the government’s modified infrastructure program. Mr. Saavedra said the company’s engineering technologies would be useful as construction challenges are expected after the lockdown is lifted.
“Our vision for engineering a first-world Philippines through facilities, methodologies, and philosophies may be helpful in developing a blueprint to help our economy and society navigate this new normal,” he said.
Megawide uses a precast technology which Mr. Saavedra said can be adapted to physical distancing requirements. The company is now ramping up its capacity to deliver external sales orders in anticipation of increased demand.
“We intend to work with our stakeholders in government and the private sector to achieve shared goals and ensure effective partnerships,” Mr. Saavedra said.
Shares in Megawide at the stock exchange shed 25 centavos or 5% to P4.75 each on Friday. — Denise A. Valdez