Megawide Construction Corp. said Tuesday it returned to profitability with a net income of P370.3 million in the second quarter of 2023 from a P64.93-million net loss in the same period last year as the construction business started to recover.
Total sales in the second quarter doubled to P6.8 billion from P3.4 billion a year ago as revenues from construction unit more than doubled to P6.7 billion.
“Construction is on its way to recovery, and we are starting to see it,” said Megawide president and chief executive Edgar Saavedra.
The company’s order book stood at P50 billion, including the contract package 104 of the Metro Manila Subway Project.
Megawide said more than half of the projects were still in the 0 to 20 percent completion stage, providing a significant balance for bookable revenues in the coming periods.
Landport business dipped 16 percent to P100 million as foot traffic, office occupancy and commercial sales were still recovering.
Average daily foot traffic at Paranaque Integrated Terminal Exchange as of June 2023 breached the 100,000 level anew, after falling below this threshold in the first few months of the year.
Office occupancy in PITX also improved more than 60 percent as of end-June despite the challenges in the office segment.
First-half net income reached P362.6 million, reversing the P441-million loss recorded last year, while revenues totaled P11.16 billion, up 52 percent from P7.32 billion in 2022.
The company said it expects to gradually reap the benefits of its acquisition of PH1 World Developers Inc.
“Our property development arm, PH1 World, will be a significant contributor to our consolidated performance moving forward. Aside from generating synergies and providing long-term project visibility, PH1 World’s healthy pipeline will also strengthen our order book quality by de-risking it from contractual and collection issues,” Saavedra said.