Metro Pacific suffers P64.8-M loss

Metro Pacific Corp., the local flagship of the Hong Kong-based First Pacific Co. Ltd., slumped to a net loss of P64.8 million in the first three months of the year as revenues and one-time gains dipped.

In the first quarter of 2004, Metro Pacific posted a net income of P4 million, boosted by one-time gains of P126.6 million.

For this year, only P49.3 million of exceptional gains were realized by the property holding company.

Metro Pacific’s consolidated revenues fell 7.5 percent to P703.2 million from P760.1 million last year due to lower revenues of its shipping unit Negros Navigation Co. (Nenaco).

Nenaco incurred a net loss of P57.8 million due to a decline in passenger traffic.

Higher operating costs also affected the shipping company’s bottomline.

Metro Pacific said Nenaco experienced a number of unscheduled dry dockings and extended maintenance servicing of several vessels, preventing them from servicing revenue-producing routes.

Meanwhile, Metro Pacific’s property unit Landco Pacific Corp. reported a 71-percent surge in net income from only P8.6 million to P14.7 million, driven by the continued success of Leisure Farms and Ponderosa Leisure Farms residential projects.

Pacific Plaza Towers, on the other hand, earned P4.1 million.

Metro Pacific’s financing charges fell to P34.6 million compared with P126.5 million a year ago as it continued to reduce its debts.

At the end of the first quarter, Metro Pacific’s outstanding debt amounted to P801.1 million or a decrease of 93 percent.

Metro Pacific expects total debts to go down to P364 million by yearend as it is now in the process of completing documentation for the retirement of P437 million in debt. Metro Pacific has been on a self-administered debt workout since 2001 when its bank debt then stood at P11.7 billion. "We have effectively and successfully concluded our three-year debt reduction exercises fulfilling the commitments Metro Pacific made in 2001 to reduce our debts and fix our businesses.

We are confident about Nenaco’s prospects under its rehabilitation program and believe it will show improved results this year compared with previous years. Landco continues to perform well and we are now assessing opportunities where Metro Pacific can foster growth in its new businesses,"company president and chief executive officer Jose Ma. Lim said.

"We are committed to realizing Metro Pacific’s transformation and we hope to announce positive progress in the course of this year," Lim added.