Core income of MPIC rises as economy picks up pace

Conglomerate Metro Pacific Investments Corp. (MPIC) on Wednesday said its core net income rose 24 percent to P7.5 billion in the first half from last year’s P6 billion.

The company said its constituent companies—spanning from energy distribution and generation, water to toll roads, hospitals and light rail operations—delivered a 15-percent increase in contribution from operations, mainly driven by a strong recovery in road traffic and growth in power consumption as more industries ramped up operating capacity.

Power accounted for P5.9 billion or 60 percent of net operating income, toll roads contributed P2.5 billion or 26 percent, water contributed P1.4 billion or 15 percent and the other businesses, mainly real estate, hospitals, fuel storage and light rail, incurred a net loss of P35 million.

Revenues rose 25 percent to P243.3 billion from last year’s P194.7 billion. This, however, excludes Manila Electric Co.’s pass-through revenues.

Light Rail Manila Corp., which operates the 20-station LRT Line 1, reported a core net loss of P329 million due to the start of the amortization of concession assets and borrowing costs.

Company chairman Manuel V. Pangilinan said the current headwinds make it difficult to predict how the second half of the year would turn out, but he said MPIC’s earnings would be better in 2022 and “may approach the 2019” figures at P15 billion in income.

“While we are growing our sales and core profitability, we remain grounded by our North Star—to contribute to national progress and improve the lives of Filipinos,” Pangilinan said.

“We remain steadfast in our pursuit of other potential growth areas, particularly in agriculture, tourism and logistics, but we are still mindful of the crucial role that MPIC plays in Philippine infrastructure and enabling the progress that our government envisions. I am hopeful that the positive tone toward infrastructure investment set by the new administration will lead to accelerating development for our country.”

The company said average interest rates on borrowings have been reduced and resulted in a 12-percent decline in net interest costs in the first half, after the company made its re-rating and refinancing of expensive debt facilities ahead of the current rising interest rate environment.

Reported net income attributable to the parent reached P9.5 billion, lower by 9 percent from the previous year when the company reported a gain from the sale of Global Business Power and Don Muang Tollways.

“Our collective efforts across the group, championed by our board and our sustainability council, have allowed us to have a pervasive impact in our respective areas of influence. Embedding sustainability in all aspects of our business resonates with our people and translates into better and more purposeful service to our customers,” said June Cheryl A. Cabal-Revilla, the company’s CFO.

“This is exactly the kind of ripple effect that we hope to achieve with our sustainability initiatives.”

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