MEGAWIDE Construction Corp. aims to pursue more projects this year, including transport infrastructure, as it banks on the confidence of its stakeholders, the company’s chairman said.
“As for Megawide, we see 2023 as a renewed opportunity to leverage on the confidence of our stakeholders as we pursue developments that accelerate the country’s growth, including transport infrastructure,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra told BusinessWorld recently.
“We also have a positive outlook for our precast and construction solutions business, which can take on construction contracts as part of our value chain in servicing the other contractors who are doing the infrastructures and commercial buildings,” he added.
The company seeks to diversify its revenue streams apart from general construction. It recently reported that its unit, the Precast and Construction Solutions, has the potential to become a growth driver for the company after recording P720 million in revenues for the first nine months of 2022, or higher by 2% than the previous year.
According to Mr. Saavedra, the company’s optimism is partly anchored on the government’s rollout of more projects, including rail and real estate.
“Affordable housing is where we can help address the nationwide housing backlog,” he said.
According to some analysts, the Philippine central bank is likely to continue monetary tightening this year as inflation is expected to remain above target until the second quarter.
Despite this, Megawide’s Mr. Saavedra said the construction industry is seen to sustain its post-pandemic momentum.
“In terms of rising interest rates, the industry runs a self-sustaining business model and will not necessarily be burdened by the increased cost of borrowing,” he noted.
On the demand side, he said that the company sees the real estate sector, especially the end-user segment in affordable to mid-market housing, to continue to generate healthy sales.
“Banks are offering flexible payment terms and long-term financing amid the pressure on interest rates, which augurs well for the buyers,” he added.
“And of course, there is the infrastructure push from the government started in previous leaderships, which will keep construction companies very busy in the coming years. Overall, the industry will remain vibrant and be a significant contributor to the economy.”
For the January-to-September period of 2022, the company’s attributable net loss widened to P445.3 million from a loss of P80.8 million in 2021.
The company’s consolidated net loss reached P970 million compared with the consolidated net loss of P510 million in 2021. This was “due to a higher loss contribution from the airport business as well as landport operations,” Megawide said in a statement. — Arjay L. Balinbin