MEGAWIDE Construction Corp. is aiming to grow its net income to about P1.82 billion by 2027 on expectations of lower financing costs and improved performance from its construction and real estate businesses, a senior executive said.
Speaking during the company’s annual stockholders’ meeting on Wednesday, Group Chief Finance Officer Jez Dela Cruz said Megawide remained on track to achieve its targets this year while laying the groundwork for higher earnings in 2027.
“Combined with the performance improvements from our construction and real estate segment, we’re looking to reach around P1.2 billion in net income for the year, and even possibly P1.82 billion by 2027,” Dela Cruz said.
Megawide reported a consolidated net income of P265 million for the first quarter, up 26 percent compared with the same period last year, while consolidated revenues grew 14 percent to P4.81 billion, driven largely by its construction and real estate businesses.
Dela Cruz added that the company had also reduced its working capital borrowings to about P10 billion as of end-June from P17 billion at the start of the year,
He said the P7-billion reduction was expected to generate about P480 million in annual interest savings, but clarified that only part would be reflected in this year’s results as the debt repayments were made throughout the first half.
Dela Cruz further said the company’s sale of shares in Citicore Renewable Energy Corp. generated a net gain of about P200 million while raising P4.5 billion in cash, with the proceeds to be used to further reduce debt and fund the expansion of Megawide’s precast facility in Cavite.
Separately, Chairman and President Edgar Saavedra said the company planned to launch additional affordable housing projects through subsidiary PH1 World Developers in Cavite and Bulacan while exploring future developments in Bulacan and Rizal.
Saavedra also said that construction had started on two housing projects in Cavite under Megawide’s partnership with Pag-IBIG Fund for the government’s 4PH housing program, adding that the company hopes to undertake more projects under the initiative.
Infrastructure works for the Cavite Bus Rapid Transit project, meanwhile, are targeted for completion before the end of the year, subject to regulatory approvals from the Department of Transportation before operations can begin.
The company’s shares on Wednesday closed unchanged at P4.00 each.
