Megawide sees record earnings next year

MANILA, Philippines - Construction and engineering firm Megawide Construction Corp. expects to post record high earnings in 2012 on the back of a strong order book.

“Next year’s earnings will be a milestone,” said Megawide chief finance officer Oliver Tan.

The company sees its 2011 profit rising to as much as P720 million, more than double the P335 million reported a year ago.

In the nine months ending September this year, Megawide chalked in a net income of P357.18 million, 45.29 percent higher than the previous level of P245.84 million. Gross revenues also grew 49.3 percent to P4.54 billion.

The growth was attributed to the progress in contracts, mostly from SM Development Corp. Among these projects include Jazz Residences and Grass Residences Tower 3.

During the nine-month period, Megawide obtained contracts from Filinvest Land Inc. for The Liner and Zen Studio projects. It was likewise awarded the second phase of Jazz Residences.

Megawide expects to secure more new projects as it seeks to diversify into infrastructure and residential construction.

The company is seeking joint ventures with big firms seeking to undertake infrastructure projects under the government’s Public-Private Partnership (PPP) program aimed at upgrading the country’s roads, bridges and airports.

The company also aims to expand its customer base. SMDC, the listed residential development arm of listed flagship firm SM Investments Corp., currently accounts for 70 percent of Megawide’s projects.

The Sy family of the SM Group also owns around 20 percent of Megawide.

Aside from SMDC and FLI, Megawide’s other clients include Belle Corp., Antel Group, Suyen Corp. (owner of Bench), Prince Jun Development Group, Bellevue Hotel Group, Keppelland Realty, Malate Bayview Development Group and Goldland Properties and Dynamic Realty.