MANILA, Philippines - Megawide Construction Corp. reported its profit fell 26 percent to P556.05 million in the first half of 2014, from the P747.95 million profit during the same period a year ago.
In the second quarter alone, profit plunged 47 percent to P227.28 million, from P425.26 million during the same quarter a year ago.
For the first half of 2014, Megawide said gross revenues increased 21 percent to P5.05 billion, compared to P4.17 billion in revenues a year ago. This was attributed to new projects such as the Rockwell Business Center, Shangri-la Salcedo, BPO Araneta and SMDC's Grass Tower 4.
Construction costs went up by 22 percent to P4.17 billion in the January to June period, from P3.41 billion a year ago, due to the new projects.
Operating costs also increased by 21 percent in the first six months of 2014 due to increase in manpower and upgrade in engineering software licenses.
However, Megawide also saw a 163 percent decline in other income in the January to June period. Finance income fell 85 percent to P45.21 million in the first six months of the year, from P309.31 million a year ago. The company disposed all of its retail treasury bonds, and invested the proceeds in time deposits and UITFs.