MEGAWIDE Construction Corp. managed to cut its attributable net loss to P218.91 million for the third quarter from a loss of P321.16 million in the same period last year, as operations of ongoing projects started to normalize and continued to ramp up due to the start of newly awarded projects.
In a stock exchange filing on Nov. 12, Megawide said its total revenues for the third quarter increased by 40% to P3.92 billion from P2.80 billion in the same period in 2020.
Meanwhile, attributable net loss for the first nine months of the year was cut to P80.80 million from a loss of P610.79 million previously.
“From quarantine restrictions imposed by the government on March 16, 2020, construction segment slowly transitioned to normal levels starting third quarter of 2020,” Megawide noted.
It also said that operations of projects continued to ramp up this year due to the start of newly awarded projects such as Suntrust Home Developers’ Suncity West Side City project, Megaworld’s Newport Link project, and the Department of Transportation’s Malolos Clark Railway Phase 1 project.
Direct costs for the period amounted to P9.46 billion and were higher by 27% or P2 billion.
“The movement was consistent with the revenue performance across all three segments, taking in consideration fixed costs and depreciation expenses despite reduced passenger volumes and lower occupancy rate at the airport and landport terminals,” Megawide said.
The company also saw its total tax expense increased this year due to the improvement in the operations of the construction segment.
“Tax expense under construction increased by P248 million due to the net income recognized for the period, as compared to the net loss incurred last year,” it said.
“This is offset by the decrease in tax expense in the landport segment, which is directly related to the decrease in its net income, and the reduction in tax rate from 30% to 25% under the CREATE (Corporate Recovery and Tax Incentives for Enterprises) law,” Megawide added. — Arjay L. Balinbin