Construction firm D.M. Wenceslao and Associates Inc. said its income in the first semester went up by 18 percent to P852.82 million from last year’s P720.94 million.
The increase in D.M. Wenceslao’s income was mainly due to the lower tax levied on the company under the Corporate Recovery and Tax Incentives for Enterprise Act.
Revenues, meanwhile, dropped by 20 percent to P1.3 billion from last year’s P1.63 billion on weak real estate sales as it is fast running out of condominium units to sell.
Residential revenues dropped by 51 percent to P267 million as only P110 million in revenues were booked for Pixel Residences during the period, down from P517 million last year.
Pixel Residences is already near full completion and turnover, with little remaining unrecognized revenues. Meanwhile, revenues from MidPark Towers reached P156 million from only P29 million last year.
“While we avidly await a full-blown recovery, we remain vigilant of risks arising from the still-ongoing Covid pandemic, including the more contagious delta variant and the stricter lockdown measures implemented to curb a surge in cases,” Delfin Angelo Wenceslao, the company’s CEO, said.
“As risks continue to emerge, we highlight the importance of having a conservatively-managed balance sheet which so far has allowed us to support our stakeholders throughout this pandemic, to continue to distribute dividends to our shareholders, and to pounce on opportunities that presented themselves.”
The company said its recurring income consisting of rentals from land, building and other revenues, such as common use service area fees remained stable at P974 million, accounting for 78 percent of total revenues. The company’s building leasing portfolio maintained an occupancy rate of 90 percent.
Total construction revenue for the first half fell by 86 percent to just P2.2 million from P15.6 million last year primarily due to decrease in construction activities rendered to external customers. This year, the company focused its construction resources on completing its on-going internal projects, the company said.
For the second quarter alone, the company’s income grew 10 percent to P300.79 million from last year’s P271.79 million.
Revenues for the quarter, meanwhile, grew by a mere 5 percent to P562.4 million from last year’s P535.78 million.
Megawide net loss
Meanwhile, Megawide Construction Corp. said it posted an attributable net loss of P92.84 million for the first semester, narrower than last year’s loss of P289.62 million.
Consolidated revenues grew 22 percent to P7.81 billion from last year’s P6.41 billion.
Its construction business posted a net income of P353 million for the first half, reversing the P303-million loss in the same period last year, the company said.
For the second quarter alone, the company posted a net loss of P95.69 million, smaller than last year’s P490.57-million loss.
Gross revenues for the quarter more than doubled to P3.98 billion from last year’s P1.44 billion.