MPIC net income up 22% in Q3

MANILA, Philippines - The strong performance of all its operating units allowed Metro Pacific Investments Corp. (MPIC) to grow its earnings by more than a fifth in the third quarter.

In a statement, MPIC said its core net income, which strips out currency and derivatives-related items, gained 22 percent to P1.6 billion in July to September from P1.3 billion a year ago.

As a result, the infrastructure conglomerate reported a core profit of P5.03 billion in January to September up 27 percent from P3.95 billion last year.

 “All our businesses achieved strong growth in profitability for the first nine months of the year. We are well placed for a strong 2012 as a whole,” said MPIC president and CEO Jose Ma. Lim.

 “The strong results for the nine months to September reflect significant service level improvements and efficiency gains for all our operating companies,” said MPIC chairman Manuel V. Pangilinan.

Pangilinan said the company is maintaining its full-year core earnings outlook at P6.3 billion, which is 23 percent higher from P5.1 billion last year, as MPIC expects to book P1.3 billion in earnings in the fourth quarter.

In the nine-month period, MPIC’s reported net income surged 45 percent to P4.99 billion from P3.44 billion a year ago.

Consolidated revenues rose 28 percent to P20.54 billion from P16.06 billion.

“The rise in core income is mainly due to higher profit contributions from Manila Electric Co. reflecting increased volumes of power sold,” MPIC said.

Higher billed volumes were also recorded for Maynilad Water Services Inc. while Metro Pacific Tollways Corp. (MPTC) enjoyed increased traffic growth and interest and expense savings.

MPIC said the hospital group, the country’s largest private chain composed of six hospitals, benefited from investments last year.

The infrastructure firm is training its eyes overseas given its current expertise.

“We are at the basement of that effort of looking at opportunities in water in countries outside the Philippines,” Pangilinan said.

The company is learning the business processes in Vietnam, Indonesia and Myanmar, Pangilinan said.

Maynilad is looking for bulk water supply business in Vietnam and Indonesia, and is scouting for sewage, sanitation and treatment plant facilities in Myanmar.

For toll roads, MPTC president and CEO Ramoncito Fernandez said the firm will join a public-private partnership in Vietnam supervised by the World Bank.

“We are interested in being a private equity partner in that project,” Fernandez said, adding that the greenfield 90-kilometer toll road will connect Ho Chi Minh to the northern part of Vietnam.

Pangilinan said the expertise developed by Filipinos can be exported and earn money for the country.

Meanwhile, Fernandez said the Bases Conversion and Development Authority has endorsed to the Office of the President the revised offer of MPIC for the contract to maintain and operate the 94-km. Subic-Clark-Tarlac Expressway.

MPIC is the Philippine unit of Hong Kong’s First Pacific Co. Ltd.