Metro Pacific income more than doubles in 1st quarter

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC), the local flagship of Hong Kong-based conglomerate First Pacific Co. Ltd., more than doubled its core net income in the first quarter this year to P775 million from P356 million last year, mainly driven by higher contributions from its water, tollways and power units.

Consolidated net income, which reflects exceptional one-time charges, amounted to P650 million, up 17.75 percent from P552 million in the same period a year earlier.

Given the company’s robust financial performance, MPIC chairman Manuel V. Pangilinan said the company is looking at a core net income of P3.6 billion before fair value adjustments and core profitability after fair value adjustments of P3 billion.

“The first quarter results this year reflect a strong pace in revenue and profit growth across-the-board for our portfolio companies which started about a year ago. On the basis of a strong operating performance of the group during the period, we are quite optimistic that prospects for 2010 remain attractive,” Pangilinan said.

MPIC president and chief executive officer Jose Ma. K. Lim said Maynilad Water Services accounted for bulk of total net earnings, contributing 46 percent or P557 million, followed by Metro Pacific Tollways Corp. which chipped in P399 million or 33 percent of operating profit. The healthcare group, on the other hand, chalked in P39 million or three percent of aggregate earnings.

MPIC’s investment in power utility giant Manila Electric Co. added P 211 million or 18 percent of equitized core earnings for the period under review.

“The strong results of Maynilad, MPTC and Meralco are driving this quarter’s earnings growth. Going forward, we will continue to strengthen and enhance the performance of the companies in our investment portfolio,” Lim said.

Maynilad’s core income reached P1.13 billion, up 143 percent from P464 million on the back of a 31 percent jump in revenues to P2.88 billion.

MPTC reported a 28 percent rise in core income to P397 million from P309 million due to a six percent growth in average daily vehicle entries and longer average journeys. Reported net income, which includes non-cash provisions, stood at P326 million as against P312 million.

The healthcare group, comprising Medical Doctors (owner and operator of the Makati Medical Center), Colinas Verdes Hospital Managers Corp. (operator of the Cardinal Santos Medical Center), and Davao Doctors Hospital, reported a core income of P111 million, down 12 percent from the year earlier level. The decline was primarily due to MDI’s higher operating expenses arising from an increase in personnel, additional decpreciation on new building and newly-purchased equipment.