Megawide Construction Corporation reported that its net loss increased to P893 million last year from P874 million in 2020 while attributable losses eased to P343 million in 2021 from P398 million.

In a disclosure to the Philippine Stock Exchange, the firm said the higher loss was incurred despite stronger construction revenues due to weak results form its other businesses.

Megawide reported consolidated revenues of P15.4 billion in 2021, 21 percent higher year-on-year, amid a persistent COVID-19 pandemic. The construction segment recorded revenues of P14.3 billion, 32 percent more than the previous year.

The airport and landport businesses, on the other hand, continued to be affected by restricted travel and transport as well as limited economic activities, resulting in weaker financial performances.

Consolidated earnings before interest, taxes, depreciation and amortization or EBITDA amounted to P2.84 billion as airport operations generated losses.

With a more stable operating environment, the construction segment recorded a net income of P401 million and more than four times the P93 million income posted in the previous year.

“The past two years under the pandemic were very difficult, as our financial performance was severely affected by restricted travel and transport,” Megawide Chairman Edgar Saavedra.

He added that, “the virus’ evolving variants ushered in a fresh set of lockdowns and discouraged a return to normalcy. Amid all these, we relentlessly pursued programs that will strengthen our core businesses and make them more cycle-resistant to deliver for us stable earnings year in and year out.” The construction segment remained resilient but Megawide sees better days ahead as the winning bids for the big-ticket infrastructure projects, such as the Metro Manila Subway and North South Commuter Line, have yet to be officially announced.

“We are also looking forward to a better performance for our airport operations, with the national elections, the campaign period associated with it, and summer season driving domestic traffic. Hopefully, with a higher vaccination rate nationwide and managed infections this year, travel will be restored and return to pre-pandemic activities will be accelerated,” Saavedra said.

The Company is already seeing initial signs of recovery in its airport asset the Mactan Cebu International Airport (MCIA), where January-February traffic showed a 170 percent improvement from the same period in 2021, data from the Mactan Cebu International Airport Authority (MCIAA) show.

“The International Air Transport Association (IATA) predicts that global air travel will be 80 to 90 percent of its pre-pandemic levels this year and next, with prospects of exceeding 2019 figures by 2024,” said Megawide’s Executive Director for Infrastructure Development and GMR-Megawide Cebu Airport Corporation’s (GMCAC’s) President Louie Ferrer.

He added that, “this revenge travel should present a huge upside to MCIA, which currently operates at 20-30 percent of pre-COVID levels.

Meanwhile, the Paranaque Integrated Terminal Exchange (PITX) is likewise optimistic for a rebound, as around 6,500 sqms of office space in Tower 2 has been signed and contracted out as of end-2021, bringing the lease rate up to 83 percent.

This is expected to be complemented by 1,250 sqms of additional commercial space that will offer new and exciting products that will serve the growing number of passengers as well.

“We are also making a conscious effort to shift to more public and social infrastructure, which we believe will be critical in truly engineering a First-World Philippines. Outside PITX, we are exploring strategic locations where we can expand intra- and inter-island connectivity through a hub-and-spoke model, with PITX at the center,” Saavedra added.