MPIC earns 8% more in Q1

MANILA, Philippines – Metro Pacific Investments Corp. reported an eight percent increase in consolidated net income to P2.6 billion, driven by the strong performance of its tollways and hospital units.

MPIC chairman Manuel V. Pangilinan is hoping the company’s earnings will be better than the seven percent growth recorded last year.

“I think we’re probably showing similar growth rates. Hopefully higher than seven percent. The various businesses are doing reasonably well. The main hindrance to our growth are one, Maynilad is now a taxpayer and two, the delay in tariffs,” Pangilinan said.

 In a briefing yesterday, MPIC officials said core net income went up seven percent, driven by strong traffic growth across its tollways, increased economic interest in Manila Electric Co. and the continued strong performance of the hospital group.

 MPIC president and CEO Jose Lim did not provide income guidance for the year, noting the delay in the tariff adjustments in its water, tollway and rail businesses.

“Our strong earnings growth reflects significant volume increases for all our business together with our intense focus on operational efficiencies. This has been achieved at the cost of years of elevated capital expenditures.

Our earnings would be stronger if we were simply allowed to implement tariff increases that our water, tollway and rail businesses are entitled to. Regrettably, we have had to resort to arbitration in connection with two of our Tollroads in order to seek compensation for over due-tariff delays. The previously reported water tariff arbitration continues,” Lim said.

Meralco’s core net income for the first quarter rose four percent to P4.6 billion due to a double digit increase in electricity consumption.

Maynilad reported a 24 percent decrease in core net income to P1.7 billion due to the expiration of Maynilad’s income tax holiday in December 2015.

Metro Pacific Tollways Corp’s core net income grew 19 percent to P747 million as a result of strong traffic growth and contribution from SCTEX and CII B&R. Average daily entries rose nine percent on the NLEX and five percent on the Cavitex from a year earlier.