Megawide Construction Corporation reported a turnaround in its 2023 performance to a consolidated net income from continuing operations of P269 million from the P1.87 billion consolidated net loss incurred in 2022.

In a disclosure to the Philippine Stock Exchange, the firm reported consolidated revenues of P18.6 billion in 2023, 26 percent higher than the previous year’s P14.8 billion. 

The performance was driven largely by the construction business, which delivered P18.1 billion in revenue and comprised 97 percent of the total. 

This was complemented by improved landport operations and initial contribution from the real estate segment, which recorded P348 million and P149 million, respectively.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) for continuing operations grew more than 10 times to P3.60 billion versus the previous year’s P353 million, coming significantly from construction operations. 

“Our EPC (engineering, procurement, and construction) business sustained a robust performance as progress on existing projects went as planned. Based on our timelines, 2024 will continue to reflect increased completion and should translate to higher revenues based on the S-curve,” said Megawide Chairman and CEO Edgar Saavedra. 

He noted that, “In addition, our Pre-Cast and Construction (PCS) unit continued to build its external portfolio, helping boost performance from the construction segment.”

For EPC, new projects signed in 2023 included Hotel 101 in Libis and Lumbangan Solar Power Plant, bringing total order book to Php43.1 billion as of end last year. 

In terms of PCS, supply contracts closed last year included horizontal infrastructure projects like the Candaba Viaduct, a portion of MRT-7, CP-104 of the Metro Manila Subway, and a data center – with a combined value of more than P2.0 billion. 

The team also secured fresh “Supply-and-Build” contracts for pre-cast materials in three new locations of PhirstPark Homes.

The landport business likewise showed improvement as foot traffic continued to increase, reaching a high of 200,000 during the peak of Holidays in December 2023 and averaged 117,000 daily by the end of the year. 

As a result, the retail area remained busy, with average spending per passenger (SPP) reaching P40 per pax from less than P30 a pax the previous year amid a growing passenger base. 

Office leasing, on the other hand, attracted more traditional tenants to fill up leasable spaces and comprised 57 percent of signed up tenants as of end-2023.

For real estate operations, PH1 World Developers, Inc. (PH1) reported its initial contribution of P149 million, representing its share since the acquisition in July 2023. 

Take-up of ongoing and new projects reached Php4.6 billion – representing 916 units – which is expected to translate to revenues moving forward.

“As our operations steadily deliver the results, we also need to manage the balance sheet and reduce our interest-bearing liabilities to ease the impact of interest expenses on our profitability. We are confident this two-pronged approach will help boost our margins and further improve our bottomline,” Saavedra added.