MPIC expects record high profits annually
Metro Pacific Investments Corporation (MPIC), now a privately-held conglomerate controlled by tycoon Manuel V. Pangilinan, expects 2024 to be a banner year and sees the company continuing to post all-time high profits in the coming years.
In a press briefing, MPIC Chief Finance Officer ChayeCabal-Revilla said “every year will be an all-time high. We will beat ourselves every time.”
MPIC reported that its consolidated core net income rose 27 percent to an all-time high P12.5 billion in the first half of 2024 from the P9.9 billion earned in the same period last year.
Cabal-Revilla said improved financial and operating results from MPIC's holdings delivered a 20 percent increase in contribution from operations to P14.8 billion.
“This was mainly driven by strong growth in energy sales at Meralco, billed volumes at Maynilad Water, and traffic on the toll roads complemented by higher tariffs,” she added.
Among MPIC's core businesses, power contributed the largest share at P10.1 billion or 68 percent of net operating income (NOI), while toll roads and water contributed P3.2 billion and P2.5 billion, respectively, representing 38 percent of NOI.
Reported net income rose 23 percent to P12.5 billion from P10.2 billion in the first half of 2023.
“Our power, toll roads, and water business continued to deliver double-digit growth in earnings on the back of strong volumes and the impact of long overdue tariff adjustments,” said MPIC Chairman, President, and CEO Manuel V. Pangilinan.
He noted that "with MPIC continuing to maintain a low cost of capital in a rising interest rate environment, the Company is poised to maintain its strong growth trajectory for the rest of the year."
Subsidiary Manila Electric Company (Meralco) posted a consolidated core net income hike of 21 percent to P23.2 billion, driven by continuing contributions from power generation, retail electricity supply, and other non-power businesses.
Metro Pacific Tollways Corporation’s core net income improved further by 25 percent to P3.4 billion, boosted by the higher share in net earnings of equity-accounted Vietnam toll roads.
Maynilad Water Services Inc. said its core net income rose 29 percent to P5.6 billion, broadly consistent with revenue growth and augmented further by lower operating expenses.