MPIC earnings rise 15% as subsidiaries flourish

MANILA, Philippines - Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) posted double-digit growth in revenues and income in the first quarter as all operating units contributed higher earnings, a trend expected to continue for the rest of the year, company officials said yesterday.

MPIC’s core net income, which strips out currency and derivatives-related items, climbed 15 percent to P2.24 billion from P2.37 billion in the same period last year while consolidated reported net income surged nearly a third to P2.3 billion from P1.8 billion.

 â€œAll our businesses are fully focused on service quality and operational efficiency, while at the same time, growing our sales and core profitability to improve the lives of all our customers,” said MPIC chairman Manuel V. Pangilinan.

“All our businesses achieved growth in profitability for the first quarter, helped in large measure by debt refinancing last year,” said MPIC president and CEO Jose Ma. K. Lim.

MPIC said the increase in core net income was driven by “earnings growth at Metro Pacific Tollways Corp. (MPTC), arising from traffic growth and increased shareholding in Manila North Tollways Corp.; growth at Maynilad Water Services Inc. and Manila Electric Co. (Meralco) due to moderately higher water and energy volumes sold; and strong organic growth of, and the benefit from new investments in the hospital group.”

Maynilad accounted for 40 percent or P1 billion of net operating income, followed by Meralco at P900 million (33 percent), MPTC at P600 million or (21 percent) and the healthcare group at P169 million (six percent).

In particular, Maynilad reported a five-percent increase in billed volume, offset by dilution of ownership to 52.8 percent from 56.8 percent. The number of water connections rose five percent to 1.14 million as of end-March from 1.08 million a year ago.

For the toll road business, MPTC’s core net income jumped 21 percent to P546 million “as a result of traffic growth, lower tax rates and increased shareholding in North Luzon Expressway (NLEX),” the company said, adding that average daily entries rose seven percent on the NLEX and nine percent on the Cavite Expressway from a year ago.

Meralco’s core net income was flat at P4.1 billion due to the “combined effect of a two-percent increase in energy sales to 7,908 gigawatt-hours and significantly higher contributions from Meralco subsidiaries, offset by the effect of a slight decrease in the distribution rate,” MPIC said.

MPIC’s hospital business, the largest healthcare chain in the Philippines, said its core net income improved 16 percent to P253 million in the first quarter “as a result of increasing patient revenues, gains from completed capital expenditure programs, savings from group synergy projects,” the company said.

It also benefited from contributions from De Los Santos Medical Center, Central Luzon Doctors’ Hospital and MegaClinic that were acquired in the second half last year.

“The results for the first quarter reflect continuing improvements in service levels as well as efficiency and financing gains for our operating companies. Regulatory uncertainties in respect of certain of our core subsidiaries mean that we are not, for now, providing earnings guidance for the full year,” Pangilinan said.

For this year, MPIC allotted P44.5 billion for its capital expenditures: P18 billion for Maynilad, P7 billion for the toll road, P15.5 billion for Meralco and P3-4 billion for the hospitals.