Metro Pacific Investments’ core profit up 17% to P12B last year

By Riza Lozada

Diversified con­glomerate Met­ro Pacific In­vestments Corp. (MPIC) reported a 17 per­cent rise in its consolidated core net income to P12.1 billion in 2016 from P10.3 billion in 2015 as a result of strong growth from all its operations.

MPIC’s tollways unit Metro Pacific Tollways Corp (MPTC) experienced robust traffic growth.

MPIC expanded power portfolio through increased investment in Beacon Elec­tric Asset Holdings Inc. (Beacon Electric) and Glob­al Business Power Corpora­tion (Global Power). MPIC’s hospital Group continued to post growth.

Mass transit operator Light Rail Manila Corp.’s (LRMC) contribution and the MPIC’s profitable entry into the logistics sector were also cited for sharing growth to the parent company’s core net income.

MPIC’s net operating income derived from power distribution and generation accounted for P7.2 billion or 48 percent of the aggregate contribution; water distribu­tion, production and sewer­age treatment contributed P3.6 billion or 24 percent of the total, toll roads contrib­uted P3.5 billion or 23 per­cent of the total, the hospital group contributed P589 mil­lion or 4 percent of the to­tal; and the rail, logistics and systems group contributed P234 million or one percent of the total.

MPIC’s group-wide cap­ital expenditure in 2016 was P40.5 billion and with an aggregate P32.7 billion of investments made last year to its existing and expanding businesses.

“Our continuing earn­ings growth reflects signifi­cant volume increases for all our businesses, supported by our capital expenditures with intense focus on operational efficiencies,” MPIC President Jose Ma. Lim said.

MPIC declared a final dividend for 2016 of 6.8 centavos per share, which is 11percent higher than the final dividend in 2015. The dividend payout ratio for 2016 is 25 percent of core income per share.

Lim said he expected continued strong volume growth this year, but it was too early to provide earnings guidance for the full year 2017.

Consolidated net income attributable to owners of the parent company rose 20 per­cent to P11.5 billion in 2016 from P9.6 billion in 2015.

MPIC’s non-recurring expense of P650 million is inclusive of project expenses and share in the impairment loss incurred by Meralco on its investment in PacificLight Power Pte Ltd, a Singa­pore-based power generator and electricity retailer.

MPIC’s water business comprises its investments in Maynilad, the biggest water utility in the Philippines, and MetroPac Water Investments Corp. (MWIC), the compa­ny’s unit focused on busi­ness development outside Metro Manila.

The water segment’s contribution to Core Net Income amounted to P3.6 billion in 2016 attributable substantially to Maynilad.

Together, Maynilad and MWIC currently provide water services to a total of 1,437,223 water connections across the Philippines.

Maynilad achieved a 4 percent increase in volume sold in its concession area in 2016.

Metro Pacific Tollways Corp. (MPTC) recorded Core Net Income of P3.3 billion in 2016, 27 percent higher than the P2.6 billion recorded a year earlier.

The growth in core in­come was a function of surging traffic growth, cost controls, and first full-year contributions from SCTEX and CII B&R of Vietnam. The continuing expansion and development of major road networks in northern Luzon added to the increase in traffic along NLEX-SC­TEX. Average daily entries for 2016 rose 9 percent on the NLEX, 17 percent on the SCTEX and 18 percent on the R1 Extension of CAVI­TEX compared with 2015 levels.

Outside the Philippines, MPTC’s investments in Thailand and Vietnam are performing well. Contribu­tion from Don Muang Toll­way Public Company Ltd. (DMT) of Thailand rose to P425 million compared with P323 million in 2015 on 12 percent traffic growth due to lower fuel prices and high­er passenger volumes at the Don Muang Airport.

CII B&R of Vietnam contributed P134 million to core income in 2016.

Locally, MPTC’s new projects are gaining traction such as the P19 billion con­struction of the Cavite La­guna Expressway (CALAx) is set to start early this year with expected completion by 2020; the groundbreaking ceremony for the Cebu-Cor­dova Link Expressway (CCLEx) held this March 2.