Metro Pacific earnings surge in Q3 amid reopened economy

MANILA, Philippines — Conglomerate Metro Pacific Investments Corp. (MPIC) saw its earnings advance in the third quarter as its businesses benefitted from a reopened Philippine economy. 

In a disclosure sent to the Philippine Stock Exchange on Wednesday, the Pangilinan-led conglomerate reported its core net income surged 26% year-on-year to P4.4 billion in the third quarter. Core profits grew 25% on an annual basis to P11.8 billion in the first nine months.

MPIC credited the growth to higher profits from its power, toll road, and water segments. 

“We are on track to sustaining our double-digit growth for the rest of the year and achieving our Core Net Income target for full-year 2022 of approximately P14 billion,” Manuel Pangilinan, company president and chief executive, said.

Broken down, revenues of MPIC’s power arm Meralco soared 36% year-on-year to P314.9 billion in the first nine months. MPIC attributed the increase in revenues to higher pass-through generation charges and improved sales. MPIC’s power segment accounted for 58% of the conglomerate’s operating income. 

The domestic economy’s reopening, which facilitated resurgent economic activity in past months, offered boons to its toll road segment. An increase in road traffic volume in the Philippines and its Southeast Asian hubs bagged Metro Pacific Tollways Corp. revenues that grew 33% on-year to P16.4 billion in the first nine months. 

MPIC noted that, on average, 562,791 vehicles used MPTC toll roads on a daily basis from January to September. This was higher by 23% compared to the same period a year ago. 

The conglomerate’s water segment, comprised of Maynilad and MetroPac Water Investments Corporation, accounted for P2.2 billion of its core profits in the first nine months. Despite Maynilad’s revenues inching up, the water utility reported its net income retreated by 1% on-year to P4.7 billion due to higher concession amortization in the same period. 

Its railway business, LRT-1, saw revenues recover 58% on a yearly basis to P1.3 billion following economic reopening. MPIC reckoned ridership rose 76% annually compared to the first nine months of 2021. 

However, LRT-1 reported a net loss of P494 million “due to the start of amortization of concession assets and borrowing costs.”

MPIC’s healthcare segment reckoned its bottom line narrowed 34% on-year since hospitalization P785 million as Covid-19 hospitalizations whittled down in the first nine months.