MPIC posts 23% hike in core income

MANILA, Philippines - Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) posted another strong double-digit growth in the first quarter as it benefited from the improved performance of all its operating units.

MPIC is jacking up its capital spending to P42 billion this year from the previous P36.3 billion for additional investments in a newly-acquired Singapore power plant.

In a regulatory filing, MPIC said its core income, which strips off non-recurring gains, jumped 23 percent to P1.9 billion in first quarter while reported net income rose 13 percent to P1.8 billion.

“All our businesses achieved strong growth in profitability for the first quarter,” said MPIC president and CEO Jose Ma. K. Lim.

“The strong results for the first quarter reflect significant improvements in service levels and efficiency gains for all our operating companies,” said MPIC chairman Manuel V. Pangilinan.

Specifically, MPIC benefited from higher volumes and tariffs from Manila Electric Co. (Meralco) and Maynilad Water Services Inc; strong traffic growth recorded by Metro Pacific Tollways Corp. (MPTC); and cost reductions and higher patient revenues enjoyed by the healthcare group.

In terms of contribution, Maynilad accounted for P1.01 billion of MPIC’s operating income, followed by Meralco at P779 million, MPTC at P438 million and hospitals at P141 million.

Lim said billed volume of West Zone concessionaire Maynilad inched up two percent as the number of customers climbed six percent to 1.08 million as of end-March compared with a year ago, while rates rose 6.6 percent.

Maynilad is in talks to acquire Mindoro-based water distributor Calapan Ventures Inc., said company president Victorico Vargas.

Power distribution giant Meralco, for its part, grew its income 18 percent to P4 billion “due mainly to an increased average distribution tariff together with a one percent increase in energy sales to 7,777 gigawatt hours.”

The average distribution charge for the first quarter hit P1.63 per kilowatt-hour (kwh), up from P1.49 per kwh a year ago.

Toll road operator MPTC reported a 19 percent increase in its core income to P450 million due to greater traffic in the North Luzon Expressway (NLEX) and Cavite Expressway (Cavitex), Lim said.

MPTC is spending P45 billion in the next three years to expand NLEX and Cavitex, and to support the construction of the Citilink and the Connector Road.

MPIC’s hospital business, the largest healthcare group in the country, posted a 13-percent growth in aggregate core income to P219 million in the first quarter.

This was driven by higher patient revenues, lower losses at nursing schools, tighter expense controls and recovery of senior citizen discounts, Lim said.

Meanwhile, MPIC hiked its spending budget this year to P42 billion,  said MPIC chief finance officer David J. Nicol, adding that the Singapore power plant will require P8 billion in investments.

In March, Meralco announced the acquisition of an effective 28-percent stake in GMR Energy (Singapore) Pte. Ltd., which owns two 400-megawatt liquefied natural gas facility in Singapore.