LISTED engineering company Megawide Construction Corp. said its consolidated net income in 2016 reached P1.92 billion, a 30 percent increase from the P1.47 billion recorded in 2015, fueled by strong construction demand.
“The Construction segment is continuously outperforming its previous year’s revenue production for two consecutive years and has achieved a compounded annual growth rate of 15 [percent],” Megawide President Edgar Saavedra said in a disclosure to the Philippine Stock Exchange (PSE) on Wednesday.
“The Company’s performance was attributed to its strong construction order book and the continuous stream of projects as a result of its unparalleled quality and level of work,” he added.
Megawide’s consolidated revenue grew 14 percent to P17.66 billion from the P15.44 billion recorded in 2015.
Construction revenues rose 13 percent to P1.83 billion, driven by a slew of private sector projects, enabling Megawide to end 2016 with a total construction order book worth P38.49 billion.
On its second full year of operations and management, GMR-Megawide Cebu Airport Corporation (GMCAC) contributed a significant increase to its consolidated net income or P902.5 million, 80 percent higher than the previous year’s P501 million.
“We expect this business segment to gain traction with our continuous effort to market Cebu as an alternative international gateway to the Philippines, given its strategic geographical location and proximity to tourist destination,” Saavedra explained.
Megawide, in partnership with Bangalore-based partner GMR Infrastructure Ltd., took over operations of the Mactan-Cebu International Airport (MCIA) in November 2014.
Non-aero related revenues in 2016 increased by 57 percent or by P192 million due to new concessionaire contracts and advertisements, it said.
For 2016, domestic and international flights increased by 8 percent and 22 percent, respectively, with the entry of more airlines and additional international and domestic flights.
“GMCAC’s upward trajectory will be bolstered further with the completion of Terminal 2 in June 2018, increasing the airport’s designed capacity to 12.5 million. This will help ensure Megawide’s stable and sustainable growth moving forward,” Saavedra said.