Construction Firm Megawide Reports P398 Million Net Loss in 1H 2020
Listed Megawide Construction Corp. (MCC) reported a net loss of P398 million during the first half of 2020, the first time it has recorded negative earnings in its corporate history.
Consolidated revenues was at P6.44 billion, which is 21 percent lower during the same period last year. The company’s construction business, mostly inactive during the quarantine season, contributed P4.88 billion, while airport operations accounted for P888 million. Airport merchandising, meanwhile added P69 million.
MCC’s bright spot was its landport business, or the Parañaqure International Terminal Exchange (PITx), which delivered revenues of P599 million and net income of P255 million for the first half of the year. The company’s newest business segment contributed 40 percent to its consolidated earnings before interest, taxes, depreciation and amortization (EBITDA), which helped cushion the impact of anemic growth in its traditional business segments.
“When we inaugurated PITX two years ago, we were very excited about its social impact and business prospects,” said Edgar Saavedra, Megawide co-founder, chairman and CEO said. “Barely one year of full-blown terminal and commercial operations, we are starting to reap the benefits of this undertaking—not just for the Company but more importantly for our commuting public.”
The company’s airport operations, meanwhile, recorded lower passenger volumes of 742,000 and 1.7 million in the first half of 2020, compared with 2.1 million and 4.3 million for the international and domestic segments, respectively, last year.
The company said it maintained a healthy order book of P48 billion despite the absence of new contracts due to the slowdown in property development and project launches from real estate players. It said it is close to securing new contracts in the second half of the year, worth at least approximately P10 billion, to beef up its order book.
“The situation we are in is unprecedented but we remain in high spirits for the Company’s prospects moving forward. This is the reason why we are building our runway for the future, which we envision to propel us to even greater heights in the years to come,” Saavedra said.
Established in 1997, Megawide is perhaps best known for its high-profile airport projects, including the newest terminal of the Mactan Cebu International Airport. Last month, its proposal to rehabilitate the Ninoy Aquino International Airport (NAIA) received original proponent status soon after an earlier proposal submitted by a consortium of some of the biggest conglomerates of the country was withdrawn.
Last year, Forbes magazine ranked Saavedra number 46 in the country’s list of 50 richest Filipinos, with an estimated personal fortune of $260 million. His co-founder, Michael Cosiquien, was at number 35 with an estimated $250 million. Cosiquien divested from Megawide in 2017.