Metro Pacific Investments Corporation, a diversified conglomerate led by businessman Manuel V. Pangilinan, expects to exceed its core earnings target of P16.1 billion for 2023—higher than its pre-pandemic record core profit of P15.6 billion.

During a media briefing, MPIC Chief Finance, Risk and Sustainability Officer Chaye A. Cabal–Revilla said the optimistic forecast is based on how the firm’s core businesses are performing so far.

She reported that MPIC’s consolidated core net income rose 33 percent to P9.9 billion in the first half of 2023 from P7.5 billion in the same period last year.

“Improved financial and operating results at MPIC’s holdings delivered a 27 percent increase in contribution from operations, mainly driven by the strong performance of the power generation business and higher water tariff for the water concession,” Cabal-Revilla said.

Among the company’s core businesses, power had the largest share at P9 billion or 72 percent of net operating income while Toll Roads and Water contributed P2.7 billion and P2.3 billion, respectively.

Net interest costs declined three percent due to the strategic rerating and refinancing of expensive debt facilities over the past two years, notwithstanding a rising interest rate environment.

Reported attributable net income increased eight percent to P10.2 billion compared with P9.5 billion last year, which had the benefit of gains from the acquisition of Landco Pacific Corporation.

“Our consistently strong performance reflects significant volume increases for our core businesses on power, toll roads, and water, bolstered by favorable tariff adjustments and savings resulting from operational efficiencies,” said MPIC Chairman, President and CEO Manuel V. Pangilinan.

He added that, “we are also realizing the fruits of strategic investments in the power generation business, and we expect this to continue to be a driver of growth in the future.”

Despite the firm’s planned delisting from the Philippine Stock Exchange, Pangilinan said the company will continue to support Philippine infrastructure and “there is no intention to materially deviate from the course that MPIC has taken in the past few years.”

“Furthermore, there is still a massive need for infrastructure investments in our country and this will provide several opportunities for shareholders to participate directly in the underlying assets of the group once the contemplated spin-offs materialize,” he said.