LISTED builder Megawide Construction Corp. has earmarked up to P3 billion for capital expenditures (capex) in 2024 and plans to take advantage of the country's continued economic recovery.

"For the group, we're looking at more or less P2.5–P3.0 billion this year," Edgar Saavedra, Megawide chairman, president and chief executive officer, told reporters at the sidelines of a company event on Tuesday.

The 2024 capex is higher than the actual spending of around P1 billion last year, he noted.

The parent firm is setting aside about P1 billion to support construction projects, Saavedra said, adding that Megawide intends to maximize funding efficiency.

This year's budget will also support real estate arm PH1 World Developers Inc. and subsidiary Cebu2World Development Inc., the developer of the new carbon market in Cebu City.

Saavedra said he was "very bullish" about Megawide's growth prospects this year, citing the completion of old problematic contracts and the sorting out of the post-pandemic order book.

"Besides, I feel like the economy is getting better. It's not just us; I think it's everyone. But generally for us, it's coming back [to pre-pandemic levels]," he said in English and Filipino.

Given the weaker demand for office and commercial properties, Megawide is seeing growth in the residential segment, particularly the premium market that is less affected by high interest rates.

"We did not feel that the demand for housing softened as many were still developing [projects]. The ultra-high-end is even stronger, while the lower affordable and socialized [market] is getting robust," Saavedra said.

Megawide has reported that double-digit revenue growth in the first quarter helped it achieve a turnaround with a net income of P183.4 million, reversing a P7.4-million net loss a year earlier.

Consolidated revenues grew 19 percent year on year to P5.2 billion, coming from existing and newly secured projects during the period.

The listed firm's construction order book was said to have remained on track and that the real estate business was slowly regaining ground along with landport operations and office developments.

Last month, Megawide disclosed plans to raise up to P5.0 billion in fresh funds via a public offering of Philippine peso-denominated fixed-rate bonds.

The company's shares were unchanged at P3.16 each on Tuesday amid a 1.07-percent decline for the benchmark Philippine Stock Exchange index.

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