Megawide swings to net loss as pandemic disrupts operations

MEGAWIDE Construction Corp. swung to a net loss in 2020, as revenues from its construction, airport, and trading operations declined amid a pandemic crisis.

The listed engineering and infrastructure company suffered an attributable net loss of P389.02 million in 2020 versus the P859.49-million profit logged in 2019, its annual report filed with the stock exchange on Wednesday showed.

The company saw its total revenues decrease by 35% to P12.92 billion in 2020 from the previous year’s P19.88 billion.

Construction operations revenue fell 29.18% to P10.84 billion last year from P15.31 billion in 2019, while airport operations revenue went down 69.95% to P1.11 billion from P3.69 billion.

The company said its construction business contributed 84% of the total revenues.

“The gradual reopening of the economy by mid-May facilitated movement of people and supply chain, sustaining healthy activities. In particular, quarterly revenues steadily rose from the low of P1.1 billion at the height of lockdown in 2Q2020 (second quarter) to P2.6 billion in 3Q2020 (third quarter) and further to P3.4 billion in 4Q2020 (fourth quarter), despite a reduced number of projects,” the company explained.

As for its operations at Mactan Cebu International Airport last year, Megawide said the total passenger count reached 2.7 million, with the domestic and international segments struggling at 1.9 million and 789,328 passengers, respectively.

Total air traffic was also confined to 26,544 movements, split into 20,514 domestic and 6,030 international flights, it added.

Revenue from trading operations dropped 78.56% in 2020 to P69.94 million from P326.22 million in 2019.

The company saw its revenue from terminal operations surge 62.48% last year to P902.41 million from P555.40 million in 2019.

Megawide said it embarked on “strict” cost rationalization and expense management across the organization, translating to a 15% reduction in consolidated operating expenses to P1.54 billion.

“Overall, 2020 was characterized by recalibration on the part of Megawide, particularly in the growth opportunities to pursue and the strategic objectives to prioritize,” the company said.

Megawide shares closed 2.73% higher at P7.14 apiece on Thursday. — Arjay L. Balinbin