Metro Pacific doubles net earnings in 2023

MANILA, Philippines — Pangilinan-led conglomerate Metro Pacific Investments Corp. (MPIC) is investing P140 billion for capital expenditures in its first full year as a private company, picking up confidence from its performance in 2023.

In its latest financial report, MPIC said its profit went up by 90 percent to P19.92 billion in 2023 from P10.5 billion in 2022, driven by the increase in contributions from power and water concessions.

MPIC’s reported income reached a record P24.5 billion, with power accounting for the bulk of the amount at 62 percent, or P15.2 billion.

Also, the toll road business contributed P5.79 billion, while water chipped in P4.38 billion, both of which improved their performance in 2023. MPIC’s other businesses also brought down their consolidated loss by 47 percent to P955 million.

For 2024, MPIC is spending another P140 billion for its capex, and power will receive the largest allocation of P41 billion. Maynilad Water Services Inc. will get the next highest at P31.4 billion, while Metro Pacific Tollways Corp. (MPTC) will secure P28 billion.

MPIC chief finance officer June Cheryl Cabal-Revilla said the capex would be financed mainly by loans with some equity, optimistic that the company will raise value from its recent deals.

Overall, MPIC expects power to remain as the largest source of its earnings, and the company is banking on Maynilad to increase its share, too, with water rates going up this year.

Further, MPIC is hoping that traffic volume in the pandemic aftermath will keep on rising, as this will benefit the toll roads under the concession of MPTC.

MPIC chairman Manuel V. Pangilinan hopes that regulators will approve as soon as possible the $3.3 billion investment between Meralco PowerGen Corp., Aboitiz Power Corp. and San Miguel Global Power Holdings Corp. The facility can generate as much as 2,500 megawatts, raising the country’s energy supply.

Afterward, Pangilinan said MPIC would proceed with the plan to merge MPTC and the expressway unit of San Miguel Corp. Tycoons Pangilinan and Ramon Ang are looking into the possibility of listing an infrastructure behemoth that can shake up the Philippine Stock Exchange.

MPIC is projecting its income, both net and reported, to improve by double digits, as it anticipates another banner year financially for the company.

MPIC used to be listed in the main index of the PSE, but opted out of the local bourse in 2023 to go private.