MPIC core earnings down 38% to P7.7 billion

MANILA, Philippines — Metro Pacific Investments Corp. (MPIC), the listed tollways and infrastructure conglomerate chaired by tycoon Manuel V. Pangilinan, reported a core net income of P7.7 billion in January to September.

This is lower by 38 percent than the P12.5 billion recorded a year ago, due “to the economic contraction stemming from the Philippine government’s response to COVID-19.”

“The resulting quarantines reduced toll road traffic, closed and then reduced rail services, and decreased commercial and industrial demand for water and power resulting in a 30 percent decline in contribution from operations,” MPIC president and CEO Jose Ma. K. Lim said.

MPIC chief financial officer David Nicol said the decline in volumes and the resulting financial numbers were essentially as expected.

Among the different businesses, power accounted for P7.6 billion or 67 percent of net operating income, its highest-ever proportion, while the water business contributed P2.6 billion or 23 percent.

Tollroads contributed P1.6 billion or 14 percent, while MPIC’s other businesses, mainly hospitals, rail, and logistics incurred an overall loss of P413 million.

“We have come through the most difficult nine months we have ever seen and on the far side of it we find ourselves in decent financial shape,” Lim said.

In the third quarter alone, core net income reached P2.4 billion, up 26 percent from the previous quarter.

“I expect this recovery to accelerate further in the final three months of the year,” Lim said.

Lim said MPIC has judiciously managed its cash and kept liquidity position its key priority.

By business, Meralco’s core net income declined by 15 percent to P15.7 billion as volume decreased by seven percent.

Global Power likewise recorded a 14 percent decline in core net income to P1.7 billion.

The toll roads business, through Metro Pacific Tollways Corp., likewise saw its income drop by 56 percent to P1.6 billion due to lower traffic as a result of community quarantines.

Maynilad Water Services Inc. and MetroPac Water Investments Corp. contributed P2.6 billion in net income, down 19 percent.

The Light Rail Manila Corp. incurred a core loss of P493 million following the suspension of operations from March 17 to May 31.

Average daily ridership was down to 223,251 during the 183 operating days of the nine-month period.

The hospitals group, through Metro Pacific Hospital Holdings Inc., reported a 77 percent decline in consolidated core net income to P262 million due to the effects of the COVID-19 crisis and community restrictions, which resulted in a sharp drop in patient admissions and outpatient census and higher costs of personnel and medical supplies.

MPHHI saw a 44 percent decline in inpatient admissions to 83,077 and a 35 percent decline in outpatient visits to 1.91 million.

The decline in MPIC earnings was mainly due to COVID-19 movement restrictions which affected transportation and transportation-related businesses, said MPIC chairman Manuel V. Pangilinan.

“We guide core net income to be in excess of P10 billion for the full year. This will be substantially lower than in 2019,” he said.