Megawide Construction Corp. said its losses narrowed to P7.12 million in the first quarter from the P60.72 million it incurred last year.
The improvement in net loss was a result of de-consolidation of the airport segment, the company said.
Consolidated revenues for the period amounted to P4.55 billion, some 14 percent higher than the previous year’s P3.98 billion.
Construction revenues amounted to P4.3 billion and contributed 98 percent to the consolidated revenues.
“The construction segment has maintained its momentum in delivering projects on time at the start of the year. With a healthy order book, the company is in the position to work on its order book, which are expected to be completed within 2 to 3 years, from various projects,” the company said.
These projects 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 and Construction Co. Ltd., and Dong-ah Geological Engineering Co. Ltd.
Landport operations, meanwhile, delivered revenues of P90.2 million, while revenues from office towers and commercial spaces and contributed 2 percent to the total consolidated revenues.
Occupancy rates was still depressed due to the oversupply in the market, resulting in a lower lease income compared to the first quarter of 2022.
“The company, however, is confident that it will be able to lease out the spaces gradually during the course of the year as the environment continues to improve and the team extensively explores alternative schemes.”
Amid this predicament, PITX or the Parañaque Integrated Terminal Exchange, continued to serve as a transportation convergence point to serve commuters to and from different places of work, resulting in high passenger throughput, it said.
Consolidated gross profit amounted to P402.2 million in 2023, translating to a consolidated gross profit margin of 9 percent.
The construction business contributed P402.9 billion or all of the group’s gross profit as its terminal operations incurred a loss.
Other operating expenses for the three-month period amounted to P413 million. The increase of P168 million is mainly due to the increase in fixed costs in support of the company growth plans for various infrastructure and development projects that it will be undertaking, such as the execution of CP104 of the Metro Manila Subway System Project worth P18 billion.
The contract was awarded to Megawide, together with its Japanese consortium partners, in May 2022.