Engineering and infrastructure firm Megawide Construction Corporation bounced back to profitability with a consolidated net income of P183.4 million in the first quarter of 2024 from the P7.4 million net loss in the same period last year. 

In a disclosure to the Philippine Stock Exchange, the firm said its performance came at the heels of a 19 percent improvement in consolidated revenues to P5.2 billion, which carried over from 2023’s performance.

“The results of the first three months of the year reflect the impact of a normalizing operating environment, allowing our businesses to thrive,” said Megawide Chairman and CEO Edgar Saavedra. 

He added that, “On the construction side, accomplishment levels in our existing order book remain generally on-track with schedule. 

“Our real estate operations is slowly pitching in and will continue to see an increasing share of revenue down the road, together with our landport operations, as foot traffic continues to grow, and office occupancy starts to recover. 

“All these factors are expected to contribute to a stronger 2024 and sustain the gains from the previous year.”

Construction remained the biggest contributor to consolidated revenues at P4.9 billion—16 percent more than 2023–and accounted for a 95 percent share. 

The segment benefitted from increasing accomplishments of existing projects, particularly the Malolos Clark Railway Project, the Suncity West Side City Resorts Complex, and Urban Deca developments.

To sustain a healthy pipeline moving forward, the Company continued to build its order book to P44.6 billion as of end-March 2024 and well within track of a comfortable P50 billion annual level. 

New contracts secured during the period included projects in the renewable energy space—among these are Citicore’s Lumbangan (Phase 2), Binalonan, Arayat, and Sta. Barbara solar power plants.

Landport operations at the Parañaque Integrated Terminal Exchange (PITX) delivered a revenue of P107 million—19 percent more than the same period last year and contributed close to 2 percent to the total consolidated revenues. 

The improvement was attributed to the continued growth in foot traffic, which reached an average of 120,000 daily and drove the average spending per passenger or SPP to P33 per pax —up from P30 per pax the previous year. 

A healthier occupancy in the office segment, which included government offices, transport services, and travel agencies as new tenants, likewise contributed to the recovery, with the current leased-out rate already reaching 70 percent as of May.

Meanwhile, revenue from newly consolidated real estate operations of PH1 World Developers, Inc. amounted to P146.9 million, delivered by ongoing development My Enso Lofts and recently completed The Hive. 

The segment is expected to contribute more significantly to consolidated revenues in the next two years, as recently launched projects steadily increase construction accomplishment.