North Luzon Expressway net earning up 13% in 2017

MANILA, Philippines — Net earnings of Metro Pacific Investments Corp. (MPIC) unit NLEX Corp. rose by 13 percent in 2017 from a year ago on the back of higher revenues from tollway operations.

NLEX Corp., which holds the concession to operate and maintain the North Luzon Expressway (NLEX) and Subic-Clark-Tarlac Expressway (SCTEX), said in a filing its net income reached P4.64 billion last year, up from the P4.09 billion in 2016.

The company said the latest net profit result was “mainly due to robust traffic growth in NLEX and SCTEX.”

Revenue grew by 10 percent to P11.76 billion last year from P10.70 billion in 2016.

Toll revenues, in particular, posted a 10 percent uptick to reach P11.59 billion last year from P10.54 billion in 2016 as more motorists used the NLEX and SCTEX.

Traffic on the 95-kilometer (km) NLEX linking Metro Manila to Central and Northern Luzon reached 237,046 average daily entries last year, eight percent higher year-on-year.

Traffic for the 94-km SCTEX which covers Subic-Tipo in Olongapo, Zambales to La Paz, Tarlac, meanwhile, reached 54,566 daily vehicle entries last year, up 21 percent year-on-year.

NLEX contributed 84 percent of toll revenues last year, while SCTEX accounted for 16 percent.

In addition to toll revenues, the company generated revenues from advertising, toll services and utility facilities, and rental and service income amounting to P174.4 million last year, 11 percent higher than the P157.4 million in 2016.

NLEX Corp.’s cost of services also climbed four percent to P4.56 billion last year from P4.39 billion in 2016.

The company attributed the higher cost of services largely to the higher concession fees.

Aside from tollways, MPIC is involved in other businesses such as water, power, hospitals, railways and logistics.