Metro Pacific trims losses to P245M

Metro Pacific Corp., the local flagship of Hong Kong’s First Pacific Group Ltd., trimmed its losses to P244.8 million last year from P837.9 million in 2003, mainly due to lower operating expenses and financing charges as well as reversals of prior provisions.

Consolidated revenues fell 17.95 percent to P3.29 billion from P4.01 billion on account of lower revenues by its shipping subsidiary Negros Navigation Co. (Nenaco) and its property operations Landco Pacific Corp. and Pacific Plaza Towers (PPT). Other income, however, grew more than three-fold to P631.6 million from only P192.5 million.

Operating expenses declined significantly to P684.7 million compared with P860.6 million on cost-cutting efforts and the deconsolidation of its former unit Bonifacio Land Corp.

Financing charges were likewise reduced to P527 million from P763.6 million as the company entered into various debt settlement agreements.

As of end-December last year, Metro Pacific had total debts of only P1.3 billion after retiring P10.4 billion in obligations. This was a sharp decline from the 2001 debt level of P11.7 billion.

Metro Pacific expects to further reduce its debt to P350 million by the end of the year.

While its debt reduction program is almost complete, management believes that the company can now revitalize its business operations and prepare for renewed growth.

Metro Pacific said it is increasing its involvement in Citra Metro Manila Tollways Corp. as part of strategy to diversify into infrastructure development which is envisioned as a prime area for future growth. Citra operates an elevated tollway in Manila and plans to build more road projects.

Nenaco incurred a loss of P481.2 million last year on lower revenues of P1.8 billion. The company had fewer number of vessels in service, unscheduled and delayed dry-dockings and creditor actions that halted operations of various vessels during peak season periods.

Landco, on the other hand, reported a 27 percent growth in net profit last year to P73.3 million from P57.7 million despite reduced revenues of P835.3 million. The improvement in net profit was attributed to reduced operating expenses which resulted from the absence of asset write-downs and other provisions.

The company is in various discussions for the sale of ongoing projects such as Terrazas de Punta Fuego and Leisure Farms while planning for new growth in its provincial shopping centers and hotel management business.

PPT, on the other hand, incurred a net loss of P28.7 million, sharply lower than the P119.6 million loss reported in 2003. Revenues, however, slid to P560.6 million from P668.2 million, mainly due to lower average per unit sales prices as various units were used for debt reduction purposes.