"It will still be a full year loss for 2002," MPC chairman Manuel Pangilinan said at yesterday’s annual stockholders’ meeting. However, Pangilinan said the company is expected to return to profit in the first half of next year.
The debt-ridden property firm, the Philippine flagship of Hong Kong’s First Pacific Corp., is the focus of a corporate battle after the Hong Kong-based conglomerate announced plans to sell part of its Philippine assets to the Gokongwei group.
MPC said it had a revised 2001 net loss of P21.1 billion. It recorded an unaudited net loss of P521.3 million in the first quarter of 2002, more than triple the loss in the same period in 2001 due to higher interest and financing charges.
As of end-2001, MPC has P18.5 billion in consolidated interest bearing liabilities. Out of these loans, P11 billion is attributed to MPC; P2.7 billion to Bonifacio Land Corp.; P2.9 billion to Fort Bonifacio Development Corp.; P1.1 billion to Negros Navigation Co.; and P765 billion to Landco Pacific.
Analysts said they expect MPC to continue recording losses this year due to high debts and a weak property market.
There were no fireworks in yesterday’s annual stockholders’ meeting of MPC as company executives chose to focus instead on their debt restructuring program.
Pangilinan reiterated that the board of directors remains fully supportive of management’s ongoing debt reduction efforts and their continuing commitment to protect the interest of all their stakeholders.
He also announced that MPC has successfully wrapped up negotiations for the restructuring of P7.5 billion in debts owed to several creditors.