MPIC expects record P7.8-B profit this year

MANILA, Philippines - Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) is projecting to boost its net income by nearly a tenth to a new record high P7.8 billion this year.

The earnings growth will be driven by higher income of operating units involved in the tollroad, water utility, power distribution and hospital businesses despite the absence of government-approved rate increases, its top official said.

“The whole [year] guidance was around P7.8 billion. It is higher from 2013,” MPIC chairman Manuel V. Pangilinan said on the sidelines of a forum on small and medium enterprises organized by Philippine Long Distance Telephone Co.

Income improvement will be across the board, involving the Manila Electric Co. (Meralco), water utility, tollways and hospitals, Pangilinan said.

Pangilinan said the full-year core earnings guidance would likely be achieved despite regulatory uncertainties.

Specifically, higher toll rates for the 84-kilometer North Luzon Expressway should have been effective early last year.

Maynilad Water Services Inc. last year sought arbitration from the International Chamber of Commerce following the order of Metropolitan Waterworks and Sewerage System to reduce rates despite the west zone concessionaire’s petition for a rate increase.

First half net income is also higher than last year, Pangilinan said. MPIC’s core income jumped 14 percent to P3.9 billion in the first semester of 2013 from P3.5 billion a year ago.

 In the first quarter, MPIC posted a double-digit growth in revenues and income as all operating units contributed higher earnings.

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

MPIC is into tollroads (Metro Pacific Tollways Corp.), power generation and distribution (Meralco), water utility (Maynilad) and healthcare (MPIC Hospitals Group).

For this year, MPIC allotted P44.5 billion for its capital expenditures: P18 billion for Maynilad, P7 billion for the tollroad, P15.5 billion for Meralco and P4 billion for the hospitals.