Metro Pacific Investments Corporation (MPIC) reported a 38 percent drop in consolidated core net income to P5.3 billion in the first half of 2020 from the P8.7 billion earned in the same period last year.
In an online press briefing, MPIC President Jose Ma. K. Lim said this is “owing largely to the economic contraction stemming from the Philippine Government’s quarantines to contain the spread of COVID-19.”
He said the quarantine reduced toll road traffic, mandated the suspension of rail services, and decreased commercial and industrial demand for water and power resulting in a decrease in contribution from operations of 31 percent.
Power accounted for P5.2 billion or 68 percent of net operating income; Water contributed P1.8 billion or 23 percent, and Tollroads contributed P0.9 billion or 12 percent. MPIC’s other business, being mainly Hospitals, Rail, and Logistics incurred a loss of P236 million.
“We have come through a difficult first half in decent financial shape. I am pleased to say that our Board of Directors has decided to maintain our interim dividend unchanged from 2019 at 3.45 centavos per common share,” said Lim.
He noted that, “The robustness of our operations, even in the depths of this crisis, reflects a decade and more of sustained capital investment that had been delivering continued expansion in our overall customer coverage up until the COVID-19 pandemic struck and the Government imposed quarantines to save lives.”
“Our priorities for now are welfare of our people; service to our customers; cash preservation while supporting construction already in progress; and only then profitability,” MPIC Chairman Manuel V. Pangilinan said.
He added that, “We are doing our best to support Government as they grapple with balancing health management with the country’s economic welfare. On health, we are adding more COVID-19 beds, and to reduce infection points we are pushing for 100 percent cashless toll collection as well as full digital metering.”
“On economic recovery, we are proceeding with needed infrastructure projects where we can. This said, the second half of 2020 will likely see lower economic activity than in 2019 and continuing uncertainty on COVID-19 infection rates and related Government responses,” Pangilinan said. He noted though that, “In these circumstances and, in particular, the effect on Maynilad’s trading and financial position after the changes proposed by the Government are officially transmitted to us, it is difficult to provide a preview of what the full year 2020 might look like.”