MPIC net earnings grow 27% to P3.8 billion

MANILA, Philippines — Metro Pacific Investments Corp. (MPIC) grew its net income by 27 percent in the first quarter to P3.8 billion on strong growth across all businesses.

In a briefing yesterday, MPIC chairman Manuel V. Pangilinan said core net earnings went up 16 percent to P3.6 billion despite some challenges to business such as rising inflation and softer dollar remittances from overseas Filipinos. He expects robust volume growth to continue.

Increased investment in the power industry also paid off and boosted first quarter growth, officials said.

Core net income was lifted mainly by an expanded power portfolio following further investment in Beacon Electric Asset Holdings Inc. last year, robust traffic growth on all domestic roads, and steady volume growth coupled with inflationary tariff increase in Maynilad Water Service Inc.

“Our earnings growth demonstrates that consistent, thoughtful and targeted investment pays off. Many billions of pesos spent over the years on improving Filipinos’ access to safe transport, clean water and reliable electricity have delivered hefty increases in volume for all our businesses,” MPIC president Jose Ma. Lim said.

The hospital group contributed four percent while the rail, logistics and systems group delivered one percent.

Meralco’s core net income grew seven percent to P4.9 billion while Global Power’s earnings  jumped 41 percent to P710 million.

The tollroad business, under Metro Pacific Tollways, reported a 16 percent increase in core net income to P1.1 billion.

Despite the strong quarterly results, MPIC officials reiterated the immediate resolution of regulatory issues facing the company.

“The appeal to the Singapore High Court by the government in respect of Maynilad’s 2017 arbitration award in Singapore was a surprising setback. I don’t anticipate resolution until November this year at the earliest,” Lim said.

For his part, Maynilad president Ramoncito Fernandez said talks on rate rebasing  are moving along.

Lim said the best way forward is for MPIC to accept the accumulated revenue backlog and apply it to the tariff over the remaining concession life together with a gradual increase in the next two to three years.

Moving forward, Pangilinan said  MPIC would continue to work with the government and support its projects.

“We need to work hard with government to accelerate rights of way delivery so we can get construction started and funds deployed on our current tollways projects. It is too early to give earnings guidance beyond a reasonable expectation that 2018 earnings will exceed last year’s,” he said.