MEGAWIDE CONSTRUCTION CORP. narrowed its attributable net loss to P7.12 million in the first quarter from P60.75 million a year ago after recording higher revenues.
In its financial report filed on Tuesday, the company showed its revenues keeping an upward trend to reach P4.36 billion in the first three months, up by 11% from the P3.92 billion booked last year.
Revenues from construction operations accounted for P4.27 billion of the company’s top line, 12.5% higher than the P3.79 billion recorded previously.
“The construction segment has maintained its momentum in delivering projects on time at the start of the year,” the company said.
Megawide’s order book includes the following: Suntrust Home Developers, Inc.’s Suncity West Side City project; 8990 Holdings, Inc.’s Urban Deca Ortigas and Cubao; Megaworld Corp.’s Gentry Manor; and the first phase of the Department of Transportation’s Malolos-Clark Railway project.
Meanwhile, revenues from the land-port segment declined 31% to P90.16 million in the January-to-March period from P130.77 million in 2022.
“Occupancy rates continue to be depressed due to the oversupply in the market, resulting in lower lease income compared to the first quarter of 2022,” Megawide said.
“The company however is confident that it will be able to lease out the spaces gradually during the course of the year as the environment continues to improve and the Team extensively explores alternative schemes,” it added.
Direct costs were higher, amounting to P3.95 billion during the quarter, a 20.4% increase from the P3.29 billion incurred in the previous year. Costs of construction operations accounted for most of it after reaching P3.86 billion, while costs of land port operations were P88.77 million.
“The movement was mainly related to rising prices of raw materials, services and higher labor costs, along with higher fixed-costs and depreciation expenses associated with capacity building,” the company said.
Earlier this month, Megawide said that it had agreed to sponsor a P3-billion loan for its subsidiary to finance the Carbon Market mixed-use development in Cebu City. The company said that it had executed on May 10 an omnibus loan and security agreement with its unit, Cebu2World Development, Inc., and bank lenders.
The Carbon Market development is a 50-year joint venture with the Cebu City government for the modernization of a 100-year-old farmer’s market into “a commercial, heritage, and cultural district.”
On Tuesday, shares in Megawide dipped 46 centavos or by 12.14% to P3.33 each. — Justine Irish DP. Tabile