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Megawide continues to bleed; losses widen to nearly P320M

MEGAWIDE Construction Corp. saw its attributable net loss for the third quarter of the year widen to P319.6 million from a loss of P218.9 million in the same period a year earlier.

Revenues for the period slightly increased to P3.97 billion from P3.92 billion previously, the company’s third-quarter financial report showed.

Third-quarter expenses reached P4.5 billion, up 5% from P4.3 billion in the previous year.

For the January-to-September period, the company’s attributable net loss widened to P445.3 million from a loss of P80.8 million in 2021.

The company’s consolidated net loss reached P970 million compared with the consolidated net loss of P510 million in 2021.

This was “due to a higher loss contribution from the airport business as well as landport operations,” Megawide said.

“Operating profit increased slightly by 5% or P43 million but the impact of additional expenses from other charges … resulted in the higher net loss in 2022,” it added.

Revenues for the period reached P11.8 billion, 3% or P361.72 million higher than the same period last year.

“The increase was mainly related to the airport segment, which showed significant recovery during the period, posting a 206% increase or P754 million,” Megawide said.

Meanwhile, construction revenues reached P10.32 billion and contributed 88% to the consolidated revenues.

“The segment experienced a slowdown of operations as certain contracts were under renegotiation due to the impact of rising raw material prices and interest rates,” the company noted.

But the company said it maintains a healthy order book after it secured new contracts from Suntrust Home Developers’ Suncity West Side City project, Landers Aseana, Hampton O&P, and the Department of Transportation’s Malolos Clark Railway Phase 1 Project, a joint venture project with Hyundai Engineering & Construction Co., Ltd. and Dong-ah Geological Engineering Co. Ltd. 

The company said its airport business “remains optimistic” of a turnaround as “vaccination has contained the virus, encouraging global and local air travel.” Nine-month revenue from this segment reached P1.1 billion and contributed 9% to the total consolidated revenue.

“Passenger volume more than doubled from last year’s pandemic level, although still fell short of pre-pandemic levels, with domestic passenger volume, which comprised 90% of traffic, rising to 3.3 million from last year’s 660,000 and international passenger volume soaring to 370,000 from previous year’s 10,000,” Megawide said.

At the same time, the airport merchandising segment experienced an 806% surge in sales to P93 million from P10 million in 2021.

“Landport operations meanwhile delivered revenue of P276 million from office towers and commercial spaces and contributed 2% to the total consolidated revenues,” Megawide said.

“The clamp down on Philippine Offshore Gaming Operators or POGO continues to put pressure on office vacancy and lease rates, affecting tenancy at PITX (Parañaque Integrated Terminal Exchange) and translated to lower revenues from the same period last year,” the company added. — Arjay L. Balinbin

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