Metro Pacific Investments Corporation reported a 272 percent surge in attributable consolidated net income to P7.0 billion in the first quarter of 2021 although core profits declined.
In a media briefing, MPIC President Jose Ma. K. Lim said the firm’s bottomline benefitted from the gain recognized from the sale of Global Business Power and Don Muang Tollways.
“These recent asset sales underscores MPIC’s commitment to optimizing its portfolio and realize value for its stakeholders,” he said.
However, consolidated core net income for the first quarter of 2021 declined 26 percent to P2.5 billion driven largely by the economic contraction amid the COVID-19 pandemic which resulted in reduced toll road traffic; light rail services; and commercial and industrial demand for water and power.
As a result of these factors, contribution from operations dropped 19 percent to P3.8 billion. Power accounted for P2.5 billion or 66 percent of the total, toll roads contributed P0.8 billion or 21 percent, and water contributed P0.5 billion or 14 percent.
Other businesses, mainly Hospitals, Light Rail, and Logistics, incurred an overall loss of P49 million.
“Although first quarter core earnings are still down year-over-year, we are expecting to benefit from the Country’s gradual economic recovery towards the latter part of the year driven by the Government’s vaccination program and the impact of the CREATE law”, said MPIC Chairman Manuel V. Pangilinan.
He added that, “This outlook serves as the foundation of our core income guidance of at least P12.0 billion for full year 2021.”
The first quarter earnings decline of 26 percent contrasts with the 34 percent full-year drop in 2020, illustrating a gradual improvement in performance notwithstanding the continued imposition of varying levels of quarantine across the country.
MPIC Chief Finance Officer June Cheryl Cabal-Revilla said the recently signed Corporate Recovery and Tax Incentives (CREATE) Law aided the first quarter performance with savings of P500 million from the lowering of income tax rates from 30 percent to 25 percent.
“This law eases the Company’s future tax liabilities and consequently allows reallocation of resources to further improve operational efficiencies,” she said.
Pangilinan said “Humanity continues to be tested to its core by the challenges caused by the COVID-19 virus.”
He noted that, “We strongly believe that more than financial indicators, the strength of the company can better be measured during this time by how well it has responded to the crisis at hand. The entire MPIC group mobilized all its available resources and personnel to support the Philippine government’s fight against COVID-19.”
Aside from the free handling and storage of vaccines, to increasing COVID-19 bed capacity in our hospitals, and the conversion of our facilities into quarantine centers, Pangilinan said MPIC is “now studying how we can be instrumental in the development of our own vaccines and help better equip our nation for a crisis such as this.”