Megawide delivers positive shift in 2023

Megawide Construction Corp., an engineering and infrastructure company led by businessman Edgar Saavedra, delivered a positive shift in 2023 after successfully turning around its consolidated net income from a net loss in the previous year.

The company announced on Monday that it booked a P269 million consolidated net income last year, a significant improvement compared to the P1.87 billion consolidated net loss incurred in 2022.

The positive outcome was driven by a 26 percent increase in consolidated revenues, which reached P14.8 billion.

"Our EPC (engineering, procurement, and construction) business sustained a robust performance as progress on existing projects went as planned. Based on our timelines, 2024 will continue to reflect increased completion and should translate to higher revenues based on the S-curve," Saavedra said in a statement.

"In addition, our Pre-Cast and Construction (PCS) unit continued to build its external portfolio, helping boost performance from the construction segment," he added.

To maintain its growth trajectory, Saavedra said the company will employ strategic measures to manage its balance sheet effectively by reducing interest-bearing liabilities, thereby mitigating the adverse impact of interest expenses on profitability.

"We are confident this two-pronged approach will help boost our margins and further improve our bottom line," he said.

Primary growth driver

Notably, nearly all of the company's revenues last year, at 97 percent, came from its construction business, which brought in P18.1 billion.

About P348 million came from landport operations and P149 million from real estate.

Last year, Megawide secured new EPC projects, including Hotel 101 in Libis and the Lumbangan Solar Power Plant, which enabled it to close the year with an order book worth P43.1 billion.

Likewise, the company also secured new supply contracts for the Candaba Viaduct, a segment of the Metro Rail Transit Line 7, contract package 104 of the Metro Manila Subway, and a data center, with a combined value of more than P2 billion.

PH1 World Developers Inc., the company's real estate arm, contributed P149 million in revenue after the uptake of its projects composed of 916 units reached P4.6 billion.