MEGAWIDE Construction Corp.’s net income attributable to the equity holders of the parent dropped 98.6% in the first three months of the year, but the company said the results signaled its return to a “healthier performance.”
The company’s first-quarter attributable net income stood at P2.85 million, down from P200.94 million in the same period in 2020, according to Megawide’s quarterly earnings report.
Total revenues fell 22.8% to P3.83 billion from P4.96 billion previously.
“While the results still lagged from the previous year, the company was able to turn in a positive bottomline due to aggressive cost rationalization and overhead management, resulting in lower operating expenses,” Megawide said in a statement.
The company’s first-quarter performance was primarily driven by its construction business, which contributed 92% or P3.42 billion of the total, down almost 10% from P3.80 billion previously.
First-quarter revenue from airport operations decreased 85.9% to P113.94 million from P808.63 million in the same period a year ago.
Landport operations revenue fell 34.8% to P187.02 million from P286.95 million in the first three months of 2020, while trading operations revenue dropped 98.2% to P1.14 million from P64.79 million.
Megawide said it is capitalizing on its advanced pre-cast technology and vertically integrated platform in construction.
The company is “pivoting to and focusing on public infrastructure projects as it anticipates a dearth in private sector launches due to the pandemic, amid existing inventory,” it added.
CAPITAL INCREASE
Also on Monday, Megawide announced that its stockholders had approved a resolution authorizing the company to increase its authorized capital stock to P5.08 billion, divided into 4.93 billion common shares with the par value of P1 per share and 150 million cumulative, non-participating, nonconvertible, perpetual preferred shares with the par value of P1 per share.
Stockholders also approved a resolution authorizing the company to “offer for sale the additional preferred shares by way of public offering or private placement transaction” as may be determined by the board of directors, and to list them with the Philippine Stock Exchange.
Megawide shares closed 1.82% higher at P6.16 apiece on Monday. — Arjay L. Balinbin