MEGAWIDE Construction Corp. has allotted as much as P3 billion for its capital expenditures (capex) to finance expansion plans this year, its top official said on Tuesday.
The company is spending P2.5 billion to P3 billion on capex, Megawide Chairman and Chief Executive Officer Edgar B. Saavedra told reporters on the sidelines of a groundbreaking ceremony for a housing project in Imus, Cavite.
He said Megawide spent about P1 billion worth of capex last year. “The capex is definitely higher this year than last year. Our projects started late last year and are now just taking off this year.”
Mr. Saavedra said about P1 billion of this year’s capex would be earmarked for Megawide, while the remaining budget would be allotted for the projects of its various units including PH1 World Developers, Inc. and Cebu2World Development, Inc.
“We have three or four projects for PH1 World and then for Megawide, we also have construction and factory [project],” he added.
Mr. Saavedra said he is bullish about Megawide prospects for the rest of the year. “I am very bullish. The economy is already recovering.”
“We already finished the old problematic contracts during the pandemic. We have new projects and we have already fixed our order book,” he added.
Mr. Saavedra said Megawide is banking on the rising housing demand spurred by the stronger spending power of its clients.
He added that the lower affordable housing segment has experienced growth, while the mid-segment has been stable.
“There is demand for housing especially that the minimum wage is increasing. The higher wage improves the spending power of buyers,” he said.
Megawide had P183.4 million in consolidated net income last quarter, a reversal of its P7.4-million net loss a year earlier. Consolidated revenue increased by 19% to P5.2 billion.
Megawide shares were unchanged at P3.16 each. — Revin Mikhael D. Ochave
