Cebu airport operator sees net income surge by 55%
MANILA, Philippines – Megawide Construction Corporation saw its net income for the first quarter the year jump by 55% compared to the same period last year, thanks to strong earnings from construction and airport operations.
Megawide told the Philippine Stock Exchange that its operating revenue during the first 3 months of 2016 more than doubled to P5.91 billion, with the company's core construction business still contributing the bulk at 93%. Their net income jumped up to P573 million from P370 million compared to the first quarter of 2015.
"The country’s property sector continues to be strong, buoyed by the growing demand for residential and especially office spaces primarily from the business process outsourcing (BPO) industry," Megawide chief finance officer Oliver Tan said in the disclosure.
Construction revenues of Megawide went up by 134% driven by revenues generated from the new residential, office, and retail projects as well as 3 solar power farm projects.
"Megawide’s foray into contracts for renewable energy facilities is a testament to the company’s strategy of diversifying and enhancing our experience and expertise to be ahead of the curve," Tan said.
The enhanced construction revenue was topped by P2.5 billion worth of new contracts closed during the year's first quarter.
Megawide also secured new projects worth P2.5 billion – including Phase 2 of Meridian Park of DoubleDragon, 10 West and St. Moritz of Megaworld, and Cyberpark Phase 2 of the Araneta Group.
Meanwhile, revenues from operations of the Mactan-Cebu International Airport totalled P431 million during the first quarter of 2016.
The company, together with Bangalore-based partner GMR Infrastructure Limited, took over operations of the Mactan-Cebu International Airport in November 2014 through a public-private partnership (PPP) scheme.
"Results from [airport] operations show that we are on the right track in achieving the goal we have for Megawide to be a diversified engineering and infrastructure company," Tan said.
Megawide is transforming from a pure construction firm into a diverse engineering and infrastructure company, with projects such as Mactan-Cebu International Airport and Southwest Terminal, the country's first integrated transport system. – Rappler.com