MPIC eyes return to pre-COVID profitability by 2022

MANILA, Philippines — Metro Pacific Investments Corp., the tollways and infrastructure conglomerate chaired by tycoon Manuel V. Pangilinan, expects to return to pre-COVID-19 profitability by 2022 as it considers 2021 still a transition year given the still to be completed rollout of vaccines in the country, as well as full recovery of the economy.

However, MPIC continues to be on the lookout for opportunities, including offers from investors particularly for its tollways business which the company may list at the Philippine Stock Exchange (PSE) in the coming years.

MPIC posted a core net income of P10.2 billion last year, down 34 percent, owing to the economic contraction brought about by the pandemic which led to reduced toll road traffic, suspended and reduced light rail services, decreased commercial and lower industrial demand for water and power.

As a result of all these, contributions from operations also dropped by 26 percent, with power accounting for 69 percent (P10.5 billion), water (P3.1 billion) and  toll roads (P2.4 billion).

Hospitals, light rail and logistics incurred an overall loss of P709 million.

Consolidated core net income, however, increased by four percent in the fourth quarter of 2020 to P2.5 billion as the company benefitted from the gradual easing of restrictions and resumption of economic activity.

MPIC president and CEO Jose Ma. K. Lim said while earnings – for the first time in the company’s history – have been less than ideal, the focus is on service continuity amidst the pandemic.

“Together with our partners in government, we worked tirelessly to ensure that every Filipino has access to the essential services we offer especially at the height of this crisis,” Lim said.

The power business reported a nine percent drop in core net earnings to P21.7 billion. Reported net income fell by 30 percent to P16.3 billion.

Global Business Power’s volume increased by two percent last year, but core net income fell by 13 percent to P2.4 billion.

Maynilad Water Services Inc. posted a core net income decline of 15 percent to P6.5 billion.

Metro Pacific Tollways Corp. (MPTC) also saw a decline in revenues to P13.6 billion due to reduced traffic caused by movement restrictions during prolonged periods of quarantine.

Core net income fell by 49 percent to P2.7 billion.

Lim said there continues to be very strong interest in the tollways group as most of the projects are expected to be completed by 2022 or 2023.

“We can consider listing this company, as well as selling down, but at the moment we’re not entertaining specific offers for these toll roads,” Lim said.

The railways business, Light Rail Manila Corp., which currently operates LRT-1, a 20-station light rail line traversing from Pasay to Quezon City in Metro Manila, posted a 62 percent decline in revenues to P1.3 billion due to suspended and reduced services as a result of quarantine protocols.

“Average daily ridership was down to 186,021 during the 274 operating days of 2020 compared with 446,943 during the 361 operating days in 2019. Ridership was limited to 13 percent capacity in June and then increased to 30 percent in October 2020,” MPIC said.

As a result, LRMC reported a core net loss of P689 million.

Metro Pacific Hospital Holdings Inc.’s reported a seven percent drop in revenues to P14.8 billion while consolidated core net income plunged by 85 percent to P224 million.

Pangilinan is looking forward to the gradual recovery of operations in 2021 spurred by increased economic activity in the country.

“We will continue to do our part as partners of the government in enabling growth in Philippine infrastructure,” he said.