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Megawide suffers P389-million loss as crisis stalls projects

Megawide Construction Corp. on Thursday said it incurred an attributable net loss of P389 million in 2020 from the previous year’s income of P859.48 million as the pandemic paralyzed economic activities in the country.

Revenues fell 35 percent to P12.9 billion for the year from the previous P20.01 billion.

Megawide said it embarked on cost rationalization and expense management across the organization, including letting go of some of its workers, translating to a 15-percent reduction in consolidated operating expenses to P1.54 billion.

“Unfortunately, we also had to reduce and re-deploy our manpower complement on suspended projects. On the bright side, this allowed us to concentrate and monitor progress on our ongoing developments more closely. Our digitization and automation also enabled us complete the tasks previously done manually,” Edgar B. Saavedra, the company’s president and CEO, said.

The construction business contributed P10.8 billion, or 84 percent to total consolidated revenues, and the rest by its airport and transport terminal.

Quarterly revenues rose from the low of P1.1 billion at the height of lockdown in the second quarter last year to P2.6 billion in the third quarter and P3.4 billion in the fourth quarter.

As of end-2020, Megawide’s order book consisted of 21 live projects compared with 30 at the start of the year, with a number currently undergoing contract negotiations with various clients.

New contracts, secured mostly in the fourth quarter of 2020, amounted to P34.8 billion and brought the company’s order book to P68.4 billion by the end of last year, a new record for the company.

These new projects included the North-South Commuter Railway North phase two, or more also known as the Malolos-Clark Railway Project, the Aglipay Sewage Treatment Plant, Sun City West Side City Project and the Newport Link.

Half of these projects were infrastructure-related, it said. The Aglipay water utility and MCRP commuter rail, highlights the company’s pivot to the segment in anticipation of weak local private developments in the near term, it said.

Airport operations at Mactan Cebu International Airport delivered revenues of P1.11 billion and comprised 9 percent of total revenues. Total passenger count reached 2.7 million, with the domestic and international segments struggling at 1.9 million and 789,328 passengers, respectively. Total air traffic was likewise confined to 26,544 movements, split into 20,514 domestic and 6,030 international flights.

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