Megawide eyes new contracts worth P24-B this year

By Leslie Gatpolintan

July 2, 2018, 5:52 pm

MANILA -- Diversified engineering and infrastructure conglomerate Megawide Construction Corp. targets to secure PHP24 billion worth of new contracts this year, optimistic about its continued business expansion, driven by the country’s economic growth and infrastructure development push.

Megawide President Edgar Saavedra told reporters on Monday the engineering procurement construction (EPC) contract for the Clark International Airport for PHP4.9 billion already forms part of its order book for the first quarter of 2018.

The government awarded the contract for the PHP9.36-billion Clark International Airport expansion to Megawide-GMR, a joint venture of Megawide and GMR Infrastructure of India.

“The other (projects) typically are buildings, commercials,” he said. “Our target is to have a more robust new contract wins from both the private and public sectors to add to our existing order book backlog, enabling us to improve revenue visibility to three years.”

Saavedra said he is bullish on growing its EPC portfolio through private sector projects, as well as the government’s continued rollout of its “Build, Build, Build” program.

Megawide chief financial officer Oliver Tan said this year’s new contracts target is mostly driven by office and residential segments, noting affordable housing remains strong.

Tan is also optimistic on growing its portfolio of infrastructure projects.

“If there will be more projects, then there will be more construction contracts that we can potentially bid and win,” he said.

Megawide secured a record high PHP38 billion worth of new contracts in 2015, which included condominium buildings on mass housing developer 8990 Holdings’ projects in Pasig City and in Tondo, Manila.

In 2017, the conglomerate secured PHP10.8 billion worth of new projects, mainly from private sector projects. These include the water treatment facility project through Maynilad’s 88 MLD Las Pinas facility, Urban Deca Ortigas, and the Ascott and DoubleDragon Towers.

Megawide will open two flagship projects this year - the Mactan-Cebu International Airport Terminal 2 and the Paranaque Integrated Terminal Exchange.

It exceeded 2017 targets with a recorded PHP19.2 billion in consolidated revenues, up 9 percent from previous year’s PHP17.6 billion.

EPC remains the core revenue contributor, bringing 87 percent of consolidated revenues or PHP16.7 billion.

Consolidated net income before controlling interest reached PHP2.2 billion last year, 17 percent higher than PHP1.9 billion in 2016. (PNA)