Construction and engineering firm Megawide Construction Corp. said Wednesday its net loss in the first quarter narrowed to P7 million from P60.7 million in the same period last year following the deconsolidation of its airport business.
Megawide said in a financial report to the Philippine Stock Exchange first-quarter revenues jumped 11 percent year-on-year to P4.4 billon on higher revenues from construction business.
Construction sales, which accounted 98 percent of total revenues, reached P4.26 billion, up 12.4 percent from P3.79 billion in 2022 as the group maintained its momentum in delivering projects on time at the start of the year.
Megawide said it was working on several construction projects that were excepted to be completed within the next two to three years. These include Suntrust Home Developers’ Suncity West Side City project, 8990 Holdings Inc.’s Urban Deca Ortigas and Cubao, Megaworld’s Gentry Manor and the Malolos Clark Railway Phase 1 Project—a joint venture project with Hyundai Engineering & Construction Co. Ltd. and Dong-ah Geological Engineering Company Ltd.
The group’s landport operations delivered revenues of P90.2 million, down 30.6 percent from the same period last year on lower occupancy from its office towers and commercial projects.
It said that while the oversupply of office spaces in the market was affecting the company’s leasing business, it remained confident that it would be able to lease out the spaces gradually during the course of the year amid the improving business environment.
Megawide stopped consolidating its airport business and its ancillary airport merchandising from the group’s balance sheet this year after the sale of its stake in a joint venture company that operates Mactan-Cebu International Airport.
Aside from construction and land port projects, Megawide is also redeveloping the Carbon Market in Cebu into a mixed-use township development.
It also ventured into data center development in joint venture with Singapore-based Evolution Data Centers.
Under the plan, Megawide and EDC will construct a 69-megawatt colocation data center in the Philippines. Phase 1 will cover a 23-megawatt deployment with total investment cost of P16.5 billion.