Megawide Construction Corp. said net income jumped 66 percent in 2015 to P1.47 billion from P887 million in 2015, fueled by the strong growth in the core construction business and the first full-year earnings recognition from its airport operation.
The profit was the highest growth posted by the company since its initial public offering in 2011, Megawide said in a disclosure to the stock exchange.
Megawide said the group recorded consolidated revenues of P15.44 billion in 2015, up 54 percent in 2014.
The construction business contributed 66 percent or P973 million to the total consolidated earnings, while income from airport operation from the Mactan-Cebu International Airport accounted for 34 percent or P501 million.
Megawide in joint venture with Bangalore-based partner GMR Infrastructure Ltd. took over the operations of the Mactan-Cebu International Airport in November 2014.
The company attributed the increase in the construction income to higher revenues, which rose 42 percent to P13.96 billion after recognizing a higher percentage of completions in on-going projects.
Revenues from airport operations amounted to P1.48 billion due to strong aeronautical, commercial and rental revenues brought by a 15.5-percent increase in passenger traffic from the 2014 level.
The company’s airport subsidiary GMR Megawide Cebu Airport Corp. continues to embark on new airline and destination marketing initiatives to add new routes and increase passenger volume.
Four new international flight routes were launched in March of this year—Los Angeles with Philippine Airlines, Xiamen with Xiamen Airlines, Taiwan with EVA Air and Dubai with Emirates.
GMR Megawide is doing renovations in Terminal 1 to improve operating efficiencies and lessen passenger processing times.
The Mactan-Cebu International Airport project was one of the infrastructure projects bagged by Megawide under the public-private-partnership program of the Aquino administration.
The others were the P16.42-billion School Infrastructure project phase I; the P3.86-billion PSIP phase II; and the P2.5-billion Integrated Transport System-Southwest Terminal.
Megawide World Citi Consortium Inc., a unit of Megawide, terminated in November its P5.7-billion contract with the Health Department involving the modernization the Philippine Orthopedic Center due to the two-year delay in the awarding of the contract.
Megawide is among the country’s leading contractors for residential, office, and mixed-use developments. The company is currently transforming from a pure construction company into a diverse engineering and infrastructure firm.