Metro Pacific Investments Corporation (MPIC) is aiming to earn P12 billion in core net income this year after registering a 34 percent drop in core profits to P10.2 billion in 2020 due to the economic contraction brought about by the pandemic.

“We look forward to the gradual recovery of our operations in 2021 spurred by increased economic activity in the country. We will continue to do our part as partners of the government in enabling growth in Philippine infrastructure,” said MPIC Chairman Manuel V. Pangilinan.

He added that, “We recognize the impact of the pandemic to our 2020 results. However, it should strongly be noted that we remained steady in investing for the future while continuing to deliver decent returns to our shareholders, employees, business partners, and the communities we engage and serve.”

The firm is allotting P15 billion for capital expenditures this year, the same level as capex for 2020, as it continues to expand its logistics and tollroad businesses.

“While earnings – for the first time in our history – have been less than ideal, we purposely directed our focus on service continuity amidst the pandemic,” MPIC President and Chief Executive Officer Jose Ma. K. Lim said.

He added that, “Together with our partners in Government, we worked tirelessly to ensure that every Filipino has access to the essential services we offer especially at the height of this crisis.”

Lim said the lower profit is due to reduced toll road traffic, suspended and then reduced light rail services, and decreased commercial and industrial demand for water and power.

As a result of all these, contributions from operations also dropped 26 percent. Power accounted for P10.5 billion or 69 percent, water contributed P3.1 billion or 20 percent, toll roads contributed P2.4 billion or 16 percent.

Other businesses, mainly Hospitals, Light Rail, and Logistics, incurred an overall loss of P709 million.

Meanwhile, Lim said MPIC is considering the public listing of its tollroad business once the construction of its major tollroads are completed and start contributing to earnings.

This will allow the business unit to realize its full value while providing a means for MPIC to reduce its stake and raise fresh capital. Lim said they are currently a lot of interest parties who want to participate in MPIC’s domestic and foreign tollroad investments. However, he stressed that there are no ongoing talks for divestment or strategic investments.