Metro Pacific posts P2.4-B profit in '99

Metro Pacific Corp. (MPC) reported yesterday a net income of P2.4 billion in 1999, a growth of 630 percent from a paltry P329 million in the previous year.

Ricardo S. Pascua, MPC president and chief executive officer, attributed the big jump in the company's net earnings from the gains on the partial sale of MPC's interest in cellphone leader Smart Communications Inc. (Smart) to Japan's Nippon Telegraph & Telephone (NTT) for P2.7 billion, the sale of Metro Bottled Water Corp. for P933 million, Metrolab Industries Inc. for P680 million and P325 million for the return of lots to Fort Bonifacio Development Corp. (FBDC).

Pascua said, however, MPC's gains were offset by a P1.4 billion provision against the value of MPC's investments in its subsidiaries and affiliates, a P119-million provision by Negros Navigation Co. (Nenaco) for the decline in the value of its assets and a P81-million loss incurred by Nenaco when its St. Francis vessel was destroyed by fire.

MPC's consolidated revenues reached P11.6 billion, slightly higher than the P11.3 billion level posted in 1998. The company's operating profit for 1999 of P2.2 billion was 21 percent lower than 1998's P2.8 billion. Total assets went down from P116.2 billion in 1998 to 99.4 million in 1999, largely the result of the reduction in development properties.

The company was also able to pare its debts to P33.4 billion last year from P48.3 billion in 1998 as the company retired head office debts, dissolution of consumer subsidiaries following their disposal and the cancellation of P8.8 billion payables to the Bases Conversion Development Authority following the return of a 64-hectare property.

MPC subsidiary Fort Bonifacio Development Corp. which is developing the Fort Bonifacio Global City, recorded net earnings of P2.36 billion for the year, an improvement of 30 percent over net earnings of P1.82 billion in 1998. The Big Delta, the seat of the Global City's central business district, is due to completion and turnover in April this year.

Landco Pacific Corp., another subsidiary operating in real estate development, reported a net income of P21.3 million, 107 percent higher than P10.3 million in 1998.

Pascua said Smart, which took 50 percent of the market in the cellphone business, yielded net earnings of P317 million, a 39 percent drop from P519 million in 1998. The decline was due to lower average revenues per subscriber and the massive costs of launching and promoting its GSM service.

Steniel Manufacturing Corp. posted a net income of P28 million, compared to P146 million non-recurring income in 1998 when the company sold Starpack, a former subsidiary engaged in the manufacture of flexible packaging materials.

On the downside, Nenaco posted a loss of P777.5 million in 1999 compared to a net loss of P847.5 million in 1998. The loss was attributed to reduced volume and tonnage, following the de-consolidation of its fast ferry services which was aggravated by operational problems in extended and unplanned repairs and maintenance of vessels and persistent difficulties encountered by its freight division at the Manila terminal.

MPC's banking unit, PDCP Bank, also ended with a loss of P401 million.

Pascua said MPC this year will focus on property development which is part of its ongoing rationalization program.