MPTC core income jumps 24% to P1.22 billion in 2009

MANILA, Philippines - Metro Pacific Tollways Corp. (MPTC) said its core net income grew 24 percent to P1.22 billion last year from P986.9 million in 2008 as traffic volume surged at a record high in 2009.

Company officials said the improvement in core net income is attributable to the higher than expected traffic reported by Manila North Tollways Corp. (MNTC) and the higher contribution of Tollways Management Corp.(TMC).

MNTC holds the concession to operate and maintain North Luzon Expressway (NLEX) and is owned 67.1 percent by MPTC.  TMC, which operates the NLEX for MNTC and has an interim agreement to operate and maintain Subic-Clark-Tarlac Expressway (SCTEX), is owned 46 percent by MPTC. 

MPTC president and CEO Ramoncito Fernandez said with the scheduled completion and opening in May of Segment 8.1, which will provide motorists another access to NLEX, as well as increased mobility related to the national elections, they are confident traffic volume for the period will reach new highs.

“We have also started the detailed engineering studies for Segments 9 and 10, the roads that connect NLEX to western Metro Manila, with the objective of starting construction next year.  This will bring us closer to our goal of connecting NLEX to the southern toll road network of Metro Manila,” Fernandez added.

For his part, MPTC chief financial officer Christopher Lizo noted that the strong operational performance of the company was driven by higher toll revenues and further rationalization of costs.

He added that the favorable fuel prices, the opening of SCTEX, as well as their intense marketing efforts and focus on  customer service have propelled traffic volume at record highs in 2009.  “The first month of this year 2010 has seen traffic continue to increase, which provides us with some optimism about the prospects for the year,” Lizo said.

MNTC reported a core net income of P1.5 billion for 2009, higher by 18 percent from the previous year’s P1.27 billion.  After deducting non-recurring provisions, reported net income for the period stood at P256.3 million, lower by 73 percent from P934 million in 2008.   

Toll revenues of P5.49 billion for the period was higher compared to the P5.19 billion reported in 2008 as the MNTC reported record traffic volumes.  Average vehicle entries for the period was reported at 150,395/day, higher by six percent compared with 2008. 

Core income consolidated by MPTC stood at P1.01 billion representing MPTC’s 67.1 percent ownership in MNTC.