LISTED engineering firm Megawide Construction Corp. is optimistic it can hit its P2-billion full-year income target given encouraging second-quarter results that were in line with full-year guidance.
“On a consolidated basis that includes the earnings contribution from Megawide’s airport operations business, the company should breach the P2-billion mark for full-year net income. This is definitely a milestone as we celebrate the company’s 20th anniversary,” Megawide President Edgar Saavedra told the stock exchange.
He said the second quarter numbers “boosts the company’s traction towards achieving the 2017 construction profit target of P1.16 billion, which is 14 percent higher compared with 2016’s P1.02 billion.”
Order book backlog stood at P33.7 billion as of end-June, providing earnings visibility for the next two years.
Megawide posted net income of P1.15 billion in the first half of this year, down 2 percent from the same period last year. For the second quarter alone, net profit slipped slightly to P602.5 million from the P604.4 million last year as operating expenses rose 14 percent to P3.5 billion. Revenues in the second quarter were up 14 percent at P4.7 billion.
Megawide said its airport operations now accounts for 48 percent of the group’s total business, with first half earnings contribution rising 15 percent to P550.92 million from P480.9 million a year ago.
“Airport passenger traffic increased by 14 percent for the first six months of the year compared to the same period last year. This is led by an increase in domestic passenger traffic by 6 percent while international passenger traffic grew by 36 percent. Air traffic volume already increased by 17 percent for domestic flights and 37 percent for international flights while awaiting completion and operation of the expansion project,” Saavedra said.
Megawide said construction of Mactan-Cebu International Airport’s terminal 2 is under way and the project is expected to be completed in June 2018, which should bring the airport’s capacity to a total of 12.5 million passengers per annum.
Megawide took over the operations of Mactan-Cebu International Airport in November 2014 through GMR Megawide Cebu Airport Corporation (GMCAC).