MEGAWIDE Construction Corp. on Wednesday said its net income last year grew 66 percent from a year earlier, bolstered mainly by its strong construction business as well as earnings realized from the operation of Mactan-Cebu International Airport (MCIA).
In a disclosure to the Philippine Stock Exchange, the construction and engineering firm said consolidated net income last year soared to P1.47 billion versus P887 million in 2014.
The net profit recorded last year was Megawide’s highest so far since its initial public offering (IPO) in February 2011.
Earnings per share increased 17 percent to P0.41 per share from P0.35 per share in 2014.
The company attributed its strong performance to its core construction business and first full-year earnings recognition from its airport operation in MCIA.
The construction business contributed 66 percent or P973 million to net profit, while airport operation income from the MCIA contributed 34 percent or P501 million.
Megawide, together with Bangalore-based partner GMR Infrastructure Limited, took over MCIA operations in November 2014.
The company noted that it registered net income of P750 million when it made its IPO in 2011 and profits have since grown by 14.5 percent on a compounded annual growth rate basis.
The increase in construction income in 2015 was mainly strengthened by its higher construction revenues at P13.96 billion, up 42 percent from 2014.
These construction revenues were derived from the higher percentage of completions in ongoing projects such as DoubleDragon Plaza at the DD Meridian Park, Araneta Center Gateway Tower 1, The Proscenium by Rockwell, World Hotel and Residences Makati, Shangri- la Salcedo Place, SMDC’s Fern Residences, the Philamlife Corporate Tower in Cebu, Phase 2 of the PPP for School Infrastructure Project with the Department of Education, and three solar power farm projects.
“Construction operating profit margin, however, declined by 100 basis points to 11 percent from 12 percent in 2014 as a result of contraction in gross profit margin because of tighter competition in pricing,” Megawide said.
It added that airport operation revenues from MCIA stood at P1.48 billion in 2015 because of strong aeronautical, commercial, and rental revenues as a result of the 15 percent increase in passenger traffic compared with the same period in 2014.