MEGAWIDE Construction Corp. sees potential in horizontal construction, as demand for vertical infrastructure is expected to decline as a result of the pandemic crisis.
“The company… believes that an emerging opportunity lies in the horizontal infrastructure space, particularly rail networks, as property consultants expect private sector vertical developments to face soft demand due to the economic slowdown,” Megawide said in a statement on Tuesday.
Megawide is keen on taking part in the Metro Manila Subway and the North-South Commuter Railway (NSCR) South Line projects.
“Our current exposure in the Malolos-Clark Railway Project allows us to gain experience in elevated railway systems civil works. If we can secure packages in both the NSCR South Line and the Subway projects, [we will have] building blocks to develop our competencies in at-grade and underground rail developments, respectively,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.
Mr. Saavedra announced at Megawide’s annual stockholders’ meeting on June 30 that the company intends to participate in three to four contract packages of the Metro Manila Subway project and another three to four contract packages of the NSCR South Line project.
“The risks associated with these ventures are well covered financially while execution risks are addressed by the expertise and experience of the participating bidders,” the company said.
The company also noted that it expanded its presence in the horizontal housing and commercial development segments after winning new contracts worth P1.24 billion in the first quarter, bringing its order book to P66.1 billion.
Megawide also expects its precast unit to become a significant contributor to its business.
“We are ramping up our precast capacity because we believe in its numerous applicability, especially in the residential and infrastructure space,” Mr. Saavedra said. “The long-term goal is to transform this support service into a significant contributor to our business, given its various applications and suitability to the current industry demands.”
The company operates an industrial facility in Taytay, Rizal, housing its two precast factories.
Megawide’s first-quarter attributable net income stood at P2.85 million, down from P200.94 million in the same period in 2020. Total revenues fell 22.8% to P3.83 billion from P4.96 billion previously.
Megawide shares closed 1.33% lower at P6.68 apiece on Tuesday. — Arjay L. Balinbin
