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Megawide suffers P918-M loss due to pandemic

Engineering and infrastructure firm Megawide Construction Corporation reported a consolidated net loss of P918 million for the nine months of 2020, a 210 percent fall from the profit of P835.17 billion earned in the same period last year.

     In a disclosure to the Philippine Stock Exchange, the firm said attributable net loss amounted to P610.79 million, down 194 percent from an attributable profit of P649.72 million in the first nine months of 2019.

The firm said the losses were mainly due to minimal revenues generated from its construction and airport segments because of the restricted movement and activities and travel bans, respectively, arising from government measures to contain the COVID-19 pandemic.

Consolidated revenues for the period amounted to P9.03 billion, 34 percent lower from the same period last year.

The construction segment revenue amounted to P7.41 billion, 30 percent below from year ago levels and contributed 82 percent to the consolidated revenues.

Since the government imposed the Enhanced Community Quarantine (ECQ) last March 17, construction activities have been suspended.

During the Modified Enhanced Community Quarantine (MECQ) beginning May 16, construction activities resumed but labor availability and supply chain has been disrupted, resulting in a slow down and delayed ramp up of construction revenues.

As government started to ease restrictions beginning June, operations started to improve in the third quarter with revenue of P2.55 billion, though still lower than normal levels due to supply chain constraints. 

Airport operations delivered P998 million in revenue for the period as the quarantine affected travel and passenger volumes.

International passenger arrivals from COVID19-affected countries like China, Japan and Korea went down beginning February while domestic volumes declined as the government declared a state of public emergency and placed Luzon under ECQ, which persisted during the MECQ and General Community Quarantine (GCQ) periods.

Airport merchandising segment, which is ancillary to airport operations, likewise experienced a slowdown in sales beginning February due to reduced passenger throughput and generated revenue of P70 million. 

Landport operations, which started full operations in latter half of 2019, delivered revenue of P552 million for the period, mostly from office tower and commercial space leases.

This contributed 6 percent of the consolidated revenues despite terminal operations temporarily suspended due to the ECQ at the beginning of second half of March 2020, although been serving as a transportation convergence point for healthcare workers and frontliners.Terminal operations reopened last June 8, after Manila was placed under GCQ by the government, and continued to operate to serve commuters going to different places of work.(James A. Loyola)


Source: Manila Bulletin (https://mb.com.ph/2020/11/17/__trashed-94/?utm_source=rss&utm_medium=rss&utm_campaign=__trashed-94)

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