MANILA -- Engineering and infrastructure developer Megawide Construction Corporation targets to secure PHP20 billion worth of new contracts this year, as it expects a rebound of profitability on the back of an expected pick up of its construction business.
“(These projects are) combination of office buildings, infrastructures. But maliit pa rin ang (There are few) infrastructures so we are trying to participate in infrastructure projects such as railways, roads,” Megawide Chairman and Chief Executive Officer Edgar Saavedra told reporters Tuesday on the sidelines of the company’s stockholders’ meeting.
Saavedra said the company is keen in taking part in the construction of Malolos-Clark railway.
The 53.1-kilometer passenger railway connecting Malolos in Bulacan to Clark in Pampanga is one of the key flagship projects of the government’s infrastructure program called ‘Build, Build, Build’ program.
“Of course, all the ‘Build, Build, Build’ projects such as rails that are for bidding, we will be actively participating in those projects,” he added.
Saavedra said they also seek to add a second runway at the Mactan-Cebu International Airport (MCIA).
Megawide officially commissioned its two national transport infrastructure projects in 2018 --the MCIA Terminal 2 in July, and the Paranaque Integrated Terminal Exchange (PITX).
The renovation of Terminal 1 will add an additional 2,200 square meters (sqm) of retail space upon its completion at the end of the year. This will complement the existing 3,800 sqm of retail space located in Terminal 2 and boost non-aero related revenues of the airport business.
Saavedra pointed out the PITX is one new business that the company is developing in Metro Manila, and is looking to duplicate in second-tier cities through the public-private partnership (PPP) mode.
“We need these kinds of transportation system to solve most of the traffic issues we have not only limited in Metro Manila, (but) even in other cities,” he said.
Meanwhile, Saavedra said net profits this year are expected to bounce back to its 2017 level at PHP2.25 billion.
The company booked a net income of PHP1.9 billion in 2018, affected by the cyclicality in the construction business and non-cash charges associated with opening of Terminal 2 at MCIA.
“We are expecting an upturn in 2019, especially in the construction business, with the completion of new projects towards the second half of 2019. Megawide has also secured a healthy pipeline of new projects in the first quarter of 2019 amounting to PHP6.2 billion, to sustain a healthy order book of projects moving forward,” he added.
In 2018, Megawide generated consolidated revenues of PHP16 billion. Construction was still the core revenue contributor at 79 percent, while 19 percent came from airport operations and 2 percent from airport merchandising. (PNA)
