Pangilinan-led Metro Pacific Investments Corporation (MPIC) is investing ₱116.15 billion for capital expenditures this year as it expects its 2025 earnings to exceed the record performance in 2024.
In a press briefing, MPIC Chief Finance, Risk, and Sustainability Officer Chaye Cabal-Revilla said this year’s capex is 15 percent higher than the ₱101 billion spent in 2024, with the bulk to be allotted for the firm’s core businesses.
Manila Electric Company (Meralco) will get the biggest capex budget for the construction of its solar plant facilities in Nueva Ecija and some expansion of its distribution facilities.
Metro Pacific Tollways Corporation (MPTC) will also get a share for the construction of existing projects, including the Candaba Viaduct, which costs ₱3 billion.
Maynilad Water Services will be using its share of the capex for the construction of water treatment plans to mitigate the water supply issue as well as for non-revenue water management.
Last year, Meralco got ₱45 billion; MPTC, ₱18 billion; and Maynilad Water Services Inc., ₱28 billion, mainly for the same expansion projects that are being continued this year.
Meanwhile, Cabal-Revilla said, “Our core income growth target for 2025 is also double-digit but, obviously, we hope to be able to achieve that because the good thing about our service is that it’s basic. Even if there is turmoil in the country, you still need water, you still need power, you still need to traverse our toll roads. If you’re sick, you still need to go to our hospitals.”
MPIC continued with its record-breaking streak, with consolidated core net income rising 21 percent to a new high of ₱23.6 billion in 2024 compared with ₱19.5 billion in 2023.
Cabal Revilla said, “Reported net income rose faster at 41 percent to ₱28.2 billion from ₱19.9 billion, owing to additional non-recurring gains from MPIC’s real estate business and a lower interest bill.”
“Improved financial and operating results from MPIC’s holdings delivered a 16 percent increase in contribution from operations to a highest-ever ₱28.4 billion.
“This was driven mainly by strong growth in energy sales at Meralco, higher billed volumes at Maynilad Water, and increased traffic on the toll roads complemented by higher tariffs,” she added.
Among the company’s core businesses, power contributed the largest share at ₱19.7 billion of net operating income (NOI). In comparison, toll roads and water contributed ₱6.3 billion and ₱6.2 billion, respectively.
“Our strong full-year earnings reflect exceptional performance across our businesses, with the power, toll roads, and water sectors driving double-digit growth in earnings,” said MPIC Chairman, President, and CEO Manuel V. Pangilinan.
He noted that, “This success is a result of strong volumes and the positive impact of long-overdue tariff adjustments.
“As we continue to invest heavily in service quality and operational efficiency, we remain focused on improving the lives of our customers while growing our sales and core profitability, ultimately creating long-term value for our investors.”
Meralco’s consolidated core net income increased 22 percent to ₱45.1 billion driven by higher contributions from power generation, retail electricity supply, and non-power businesses.
MPTC’s toll revenues rose 16 percent to ₱31.6 billion due to a combination of toll rate increases in all markets and traffic growth in the Philippines. Core net income rose more slowly at nine percent to ₱6.4 billion due to higher interest expense.
Maynilad’s revenues grew 23 percent to ₱33.5 billion, reflecting a three percent increase in billed volumes and a 20 percent tariff adjustment in early January 2024. Core net income rose 40 percent to ₱12.8 billion, driven by lower operating expenses.