Engineering and infrastructure firm Megawide Construction Corporation registered a 21 percent growth in consolidated net income for the first six months of the year to P438 million as construction operations sustained its strong momentum. 

In a disclosure to the Philippine Stock Exchange, the firm said this came from consolidated revenues of P11.4 billion, up slightly from P11.3 billion last year, contributed largely by construction and partially from the real estate segment’s initial contribution.

Consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to P2.6 billion versus the previous year’s P2.1 billion.

“Construction has been a significant growth driver for the economy during the period as the government continued to push for infrastructure development, complemented by a more normalized operating landscape,” said Megawide Chairman and CEO Edgar Saavedra. 

He noted “This benefitted our integrated operations, which sustained a strong start to the year and is expected to be a key engine for Megawide’s value creation model.”

Philippine gross domestic product grew six percent in the first half of 2024, buoyed by the robust construction segment, which recorded double-digit growths from both the industry and expenditure sides.

As a result, Megawide’s construction revenues reached P10.9 billion and contributed 95 percent to the consolidated amount, with steady accomplishment in its existing order book noted. 

New projects during the period amounted to P8.9 billion, mostly from affiliate Megawide Construction Corp. - Citicore Construction, Inc. (MCC-CCI), representing several locations of Citicore’s solar power plants, CP-104 of the Metro Manila Subway System Project, and PH1 World Developers, Inc.’s Modan Lofts Ortigas Hills. 

These brought total order book to P48.0 billion as of end June 2024, estimated to be worth two to three years of revenue.

The manufacturing side of the construction business – representing the Pre-cast and Construction Solutions (PCS) segment – likewise recorded a 150 percent increase in revenue to P1.9 billion and contributed 17 percent to total from seven percent the previous year.

“Our PCS business is expected to be a strong contributor moving forward, especially with higher margins associated with it and significant economies of scale potential. 

“We believe that the growing appreciation and application of our PCS products in infrastructure, residential, and commercial developments will accelerate the unit’s income generation and boost its share to our construction business,” Saavedra said.

With an aggressive push, the share of external order book in the PCS segment has jumped to 65 percent during the period from 35 percent last year. 

These include Leighton Asia for the Candaba viaduct expansion project, portions of the MRT-7 extension line, and Vitro Data Center, among others, on top of the existing supply and build contract for several locations of Phirst Park Homes, Inc.

Meanwhile, revenue from newly consolidated real estate operations under PH1 amounted to P311.1 million for the period, and contributed three percent to consolidated revenues. 

Landport operations, on the other hand, delivered revenue of P205.2 million from office towers and commercial spaces and contributed the balance of two percent to total consolidated revenues. 

The improvement was attributed to the continued growth in foot traffic, reaching a record of 156,000 monthly average for June 2024, and healthy spending per passenger (SPP) at P34 per pax.

Occupancy in the commercial segment climbed to 84 percent while take-up office towers improved to 37 percent, which included government offices, transport services, and travel agencies as new tenants.