Megawide Construction Corp. said Monday it managed to return to profitability after three consecutive quarters of losses with a net income of P2.9 million in the first quarter on aggressive cost rationalization and overhead management.
Megawide said in a filing with the stock exchange first-quarter revenues fell 25 percent to P3.72 billion from P4.96 billion a year ago, as airport, construction, and land port businesses continued to struggle from the impact of the pandemic.
The company said construction revenues, which accounted for 92 percent of total sales, reached P3.4 billion in the first quarter, down 10 percent from a year earlier.
It said prospects for the coming quarters remained positive as it aimed to recognize revenues from big ticket contracts, such as the Suncity Westside City and its share from Malolos-Clark Railway Project.
Revenues from airport business plummeted 86 percent to P114 million from P808.6 million a year ago as domestic and international travel remained restricted.
Operations at the Mactan-Cebu International Airport remained practically grounded, with passenger volumes only a fraction of pre-pandemic levels.
It expects airport operations to undergo a recovery period from 2021 to 2023.
Megawide said it would continue to focus on public infrastructure projects as it anticipates a dearth in private sector launches because of the pandemic.
“We are very excited to participate in the upcoming bidding for the Metro Manila Subway System and North-South Commuter Railway-South Line projects this year, where we can further expand our scope and leverage our advantages,” Megawide chairman and chief executive Edgar Saavedra said.
Megawide, together with consortium partners, started the groundworks on the MCRP and installed a mobile batching plant to supply concrete for the project. Temporary holding facilities are also being put up and several construction-related equipment will be provided through independent contracts.
“We hope to offer our expertise and wide array of solutions in this fast-growing infrastructure space, whether as an engineering contractor, a service or product provider, or both, to maximize our exposure and generate more business. We will also continue to be active in the residential and commercial and industrial segments to further expand our presence once the economy recovers,” said Saavedra.
The company secured two new projects in the first quarter to bring its order book to P66.1 billion.
Meanwhile, Megawide’s landport operations contributed P187 million in revenues and a net income of P45 million in the first quarter.