MANILA, Philippines — Metro Pacific Investments Corp. (MPIC), the infrastructure conglomerate chaired by tycoon Manuel V. Pangilinan, reported a 10 percent increase in consolidated core net income in the first half of the year to P8.6 billion.
Consolidated reported net income rose 14 percent to P8.9 billion.
In a press briefing yesterday, MPIC officials said the company’s expanded power portfolio as a result of higher investment in Beacon Electric Asset Holdings Inc., strong traffic growth in its roads and steady volume growth from the water business contributed to income growth.
MPIC is among the country’s diversified conglomerates with a wide portfolio of businesses such as power, toll roads, rails, logistics and hospitals.
Power accounted for P5.8 billion or 55 percent of net operating income, while toll roads contributed P2.3 billion or 21 percent. The water business contributed P2.1 billion or 20 percent, while the hospital group’s contribution was P338 million or three percent.
The rail, logistics and systems group delivered P60 million or the remaining one percent of net operating income.
MPIC president and chief executive officer Jose Ma. Lim said that while it is too early to give profit guidance for 2018, the company expects the strong performance to continue for the rest of the year with the expected resolution of long pending tariff increases.
“Our operating and financial performance has been strong, and we expect the full-year numbers to be similar. Strong volume growth in recent years is due to billions of pesos of investments in our road and water businesses,” Lim said.
“On toll roads, we have the broad shape of settlement agreed in principle. On water, we expect arbitration proceedings to conclude within the year,” he added.
Meralco’s core net income rose seven percent to P10.9 billion on the back of a seven percent increase in energy sales.
For the toll roads business, Metro Pacific Tollways Corp. (MPTC) posted a core net income of P2.3 billion, up 12 percent.
It reported a 57 percent increase in vehicles to an average of 924,364 a day due mainly to the traffic contribution from its investment in PT Nusantara Infrastructure Tbk (PT Nusantara) in Indonesia.
Average daily vehicle entries for all three of our domestic tollways system in the country such the North Luzon Expressway, Cavitex and SCTEx rose nine percent to 480,711.
MPIC’s water business comprises investments in Maynilad, the biggest water utility in the Philippines, and MetroPac Water Investments Corp. (MPW).
For Maynilad alone, core net income grew 15 percent to P4.2 billion, driven by revenue growth, lower tax provisions and lower interest expense.
Metro Pacific Hospital Holdings Inc., the hospital arm, reported a 15 percent jump in aggregate revenues, driven by a 12 percent increase in out-patient visits to 1,640,482 and a 15 percent growth in in-patient admissions to 91,295.
“I remain optimistic that settlement will be reached at the end of the day. Uncertainty is felt by investors in our financial market and by counterparties unsure of such resolutions. In the meantime, we are doing our best to support the government’s Build Build Build program but tariff resolution will certainly help such program be financeable,” Pangilinan said.