MPIC on track to hitting 2022 core net income target

MANILA, Philippines — Metro Pacific Investments Corp. (MPIC), the tollways and infrastructure conglomerate chaired by Manuel V. Pangilinan, is on track to hitting its net income target for the year.

A company official said the MPIC’s core business segments grew in the third quarter, putting the company on track to meeting its 2022 core net income goal.

Toll roads, power and the water segments reported strong volume in the third quarter amid the easing of mobility restrictions following a two-year debilitating COVID-19 pandemic and despite higher costs of goods.

“Volume and demand remain strong,” the executive said, noting that the company is in the business of basic services, which remain in demand despite the difficult post-COVID environment.

MPIC is scheduled to announce its third-quarter earnings results next month.

Company officials earlier said core net income could at least hit a pre-pandemic level of P15.6 billion. Last year, MPIC’s core net income reached P12.3 billion.

MPIC reported a consolidated core net income of P7.5 billion for the first half of 2022, up 24 percent from a year earlier.

On the other hand, reported net income was down nine percent to P9.5 billion during the period compared to the same period last year when the company reported a gain from the sale of Global Business Power and Don Muang Tollways.

Power accounted for P5.9 billion or 60 percent of net operating income; toll roads contributed P2.5 billion or 26 percent; water contributed P1.4 billion or 15 percent.

On the other hand, real estate, hospitals, fuel storage and light rail incurred a net loss of P35 million.

Pangilinan said that on top of the core businesses, the company has been exploring other areas such as logistics, tourism and agribusiness.

The group’s healthcare arm, meanwhile, has been reintroduced as Metro Pacific Health with the aim of making healthcare more accessible and affordable to Filipinos.

Pangilinan said the conglomerate is pursuing a wider spectrum of investments such as in health services and telemedicine and other pressing needs of the public such as basic services.

MPIC has also been expanding in other businesses particularly agribusiness. It announced this year a strategic partnership with the Carmen’s Best Group.

Under the partnership, the Carmen’s Best Group integrated its assets and operations into The Laguna Creamery Inc., with MPIC owning a 51 percent equity interest in TLCI and the Carmen’s Best Group retaining a 49 percent stake.

MPIC and Carmen’s Best Group envision transforming TLCI into a fully integrated dairy business, serving local demand and eventually competing globally.