MPIC core earnings rise 20% to P12.3 billion in 2021

MANILA, Philippines — Pangilinan-led Metro Pacific Investments Corp. (MPIC) reported yesterday a consolidated core net income of P12.3 billion last year, up 20 percent from the P10.2 billion recorded a year ago.

However, with the ongoing conflict between Russia and Ukraine, MPIC is being cautious with its full-year income guidance, which MPIC chief finance officer Cheryl Cabal-Revilla said could range from “a high single-digit growth” to “low double-digit growth.”

Nonetheless, MPIC is allocating P136 billion for capex this year, a huge leap from P78 billion in 2021.

Tycoon Manuel V. Pangilinan, chairman and president of MPIC, said they would keep a close watch on the ongoing conflict as it could push oil prices upward, which would in turn put pressure on inflation and cut into consumers’ income. These could then affect MPIC’s tollways business and demand for electricity if power rates go up.

“I do hope the economy can still grow despite the impact of cost push inflation,” Pangilinan told reporters in a virtual briefing on MPIC’s 2021 financial performance yesterday.

Last year’s improvement in core net income was propelled by a 13 percent growth in the first half of 2021, largely driven by improved traffic on its toll roads and higher volume of electricity sold by Manila Electric Company, the country’s biggest power distributor.

MPIC’s businesses include toll roads and infrastructure through Metro Pacific Tollways Corp. (MPTC); hospitals Metro Pacific Hospital Holdings Inc (MPHHI); water through Maynilad Water Services Inc. (Maynilad); power distribution through Manila Electric Company (Meralco; transport through Light Rail Manila Corporation and logistics through MetroPac Movers Inc.

In the fourth quarter alone, MPIC’s core net income rose by 14 percent to P2.8 billion as Meralco’s core net income rose nine percent, driven by higher energy sales and significantly higher contribution from its different business units and subsidiaries.

Metro Pacific Tollways Corp’s (MPTC) core net income likewise grew by 11 percent on the back of generally higher traffic on its toll roads while Maynilad Water Services Inc.’s (Maynilad) core net income increased by 36 percent due to lower taxes resulting from the CREATE Law.

Full year consolidated reported net income more than doubled to P10.1 billion following the gain recognized from the sale of Global Business Power and Don Muang Tollways.

Contributions from operations rose by 11 percent to P17.1 billion – power business accounted for P11.2 billion or 65 percent of the total toll roads with P3.9 billion or 23 percent, and water with P2.8 billion or 16 percent.

Other businesses, mainly light rail and logistics, generated an overall loss of P1 billion owing to the capacity limitation on LRT-1 trains and the discontinuance of warehousing operations, respectively. These losses were partially offset by the hospital group’s contribution of P298 million.