MPIC’s core profit rises to P14.1 billion

By James A. Loyola

Metro Pacific Investments Corporation reported a 17 percent rise in consolidated core net income to P14.1 billion last year from P12.1 billion in 2016 on the strength of its increased presence in the power industry.

In a press briefing, MPIC President Jose Ma. K. Lim said consolidated reported attributable net income rose 15 percent to P13.2 billion in 2017 from P11.5 billion in 2016.

Non-recurring expense amounted to P953 million, up from P650 million a year earlier, and consisted mainly of refinancing expenses, project expenses and separation costs of a redundancy program at Maynilad Water Services, Inc. (Maynilad), largely offset by a realized gain on sale of shares in Manila Electric Company (Meralco).

Recurring profit growth was due to an expanded power portfolio following further investment in Beacon Electric Asset Holdings Inc., robust traffic growth on all roads held by Metro Pacific Tollways Corporation (MPTC), and continuing growth in the Hospital Group.

In terms of contribution to MPIC’s net operating income, Power (distribution and generation) accounted for R9.4 billion or 52 percent of the aggregate contribution; Tollroads contributed P3.9 billion or 22 percent of the total; Water contributed P3.7 billion or 21 percent of the total; the Hospital Group provided P685 million or 4 percent of the total; and the Rail, Logistics and Systems Group delivered P150 million or 1 percent of the total.

“Our earnings growth reflects significant volume increases for all our businesses, supported by years of high investment together with our continuing emphasis on operational efficiencies,” said Lim.

MPIC Chairman Manuel V. Pangilinan said “the overwhelming demand for the services we provide, against the backdrop of strong economic growth, underpins our outlook for 2018.”

However, he said “it is too early to give earnings or capital expenditure guidance for the year at this time, especially as we attempt to resolve our tariff issues in the course of 2018.”