MANILA, Philippines — The decision to go private last year has worked wonders for conglomerate Metro Pacific Investments Corp. (MPIC), as the company is on its way to another banner year.
In a recent investor presentation by Hong Kong-based investment holding company First Pacific Co. Ltd., it said MPIC’s owners have increased the dividend payout and guided The Manila Electric Co. (Meralco) and Metro Pacific Tollways Corp. (MPTC) to major new investments for growth since the delisting.
“Following MPIC’s delisting, the only major equity market access to most MPIC assets is via shares in First Pacific,” it said.
MPIC voluntarily delisted from the Philippine Stock Exchange and successfully re-privatized last year.
First Pacific and other investors delisted MPIC at a valuation of $2.96 billion.
First Pacific, led by business titan Manuel V. Pangilinan., holds an economic interest of 46.3 percent in MPIC.
Post-privatization, MPIC’s core profit grew by 27 percent to a record high of P12.5 billion in the first half compared to last year’s P9.9 billion, the group’s last half-year earnings as a listed company.
Contribution from investee companies also climbed by 20 percent to a record high of P14.8 billion on contribution growth led by the group’s power and toll roads businesses.
First Pacific said volume growth is expected to remain strong across MPIC’s core businesses of power, toll roads and water for the rest of 2024, while healthcare and real estate investments are expected to increase their contributions starting this year.
“Continuing demand growth for electricity will enable Meralco to drive earnings growth to a new successive record high at MPIC, supported by growing traffic and higher tolls at MPTC while Maynilad will deliver strong earnings on the back of higher tariffs and volume growth,” it said.
Looking ahead, First Pacific said Maynilad, the largest water utility in the country by customer count, must be listed by January 2027 under its franchise.
It said MPTC, on its end, is expected to see partial monetization in a similar time frame via a share sale or public offering to bring in new investors and capital.
MPTC revenues are seen rising over the medium term with steady traffic growth in Philippines, Indonesia and Vietnam road investments.
Further regional expansions are also sought as opportunities arise, such as the Trans-Java Highway.
For MPIC’s hospital business, First Pacific said 2024 capital expenditures is seen rising to P7.7 billion from P3.7 billion in 2023 to support building improvements, new medical equipment as well as increasing digitization of systems.
Its occupancy rate for this year is likewise targeted to increase to 61 percent.
MPIC is an infrastructure investment and management company with holdings in the country’s largest electricity distributor, toll road operator, water distributor and healthcare group. It also holds investment in the storage of petroleum products, real estate, light rail and agribusiness.