MANILA, Philippines — The continued easing of pandemic restrictions and a flurry of election-related spending boosted the profits of Metro Pacific Investments Corp. in the first three months of the year, although some of its businesses still posted losses.
Consolidated core net income from MPIC’s various business segments grew 23% year-on-year to P3.1 billion in the first quarter, the company told the stock exchange on Wednesday.
Explaining its financial performance, MPIC said contribution from operations surged 14% year-on-year to P4.2 billion, as the company “benefitted from continued economic recovery and intensified election-related activities in the country.”
But Manuel V. Pangilinan, company chairman, said it is still too early to give earnings guidance for the year. Figures showed some of MPIC’s businesses were still in the red last quarter.
“The continuing strong demand for our services despite geopolitical uncertainties supports our optimism for 2022,” Pangilinan said in a statement.
Broken down, MPIC’s power segment, which consists of contributions from Meralco and has a 58% share to MPIC’s first quarter profits, reported a core net income of P5.6 billion, up 10% on an annual basis.
Meanwhile, core net income from MPIC’s toll roads in the Philippines and other Southeast Asian markets rose 59% on-year to P1.3 billion. This segment accounted for 29% of MPIC’s bottom-line last quarter.
“Toll road traffic is now close to pre-pandemic levels, and power consumption has considerably increased as more industries ramp up operating capacity,” the company explained.
MPIC’s water business netted P1.4 billion in the first quarter, up 10% compared with a year ago. This segment, which had a 14% share to MPIC’s earnings last quarter, comprises of investments in Maynilad, the Philippines’ largest water utility in terms of customer base, and MetroPac Water Investments Corp.
However, other businesses mainly hospitals, light rail, fuel storage, and logistics incurred an overall loss of P76 million.
Light Rail Manila Corp., operator of LRT-1, sank in the red “due to the start of amortization of concession assets and borrowing cost on the existing rail system,” MPIC explained. The hospital business, meanwhile, recorded losses due to “higher personnel costs” incurred when the company hired more workers amid the health crisis.
“Our focus over the near to medium term is to continue to deliver on our commitments to support infrastructure development in the country,” Pangilinan said.
Shares in MPIC ended flat at P3.82 apiece on Wednesday. — Ian Nicolas Cigaral