Business World Online
Posted on May 09, 2011 09:13:14 PM
LOCAL CONGLOMERATE Metro Pacific Investments Corp. (MPIC) expects to surpass this year the P3.86-billion profit recorded in 2010 amid renewed plans to increase its stake in Manila Electric Co.
Metro Pacific Investments Corp. (MPIC) Chairman Manuel V. Pangilinan leads the MPIC briefing on first-quarter results at their headquarters in Makati yesterday. -- Jonathan L. Cellona
(Meralco) and expand its other businesses, officials yesterday said.
“We will exceed the realized net income in 2010,” Metro Pacific Investments Chairman Manuel V. Pangilinan said in a briefing.
“The quantum of that number will depend on Manila Electric Co.’s own guidance,” Mr. Pangilinan added, noting that this power distributor subsidiary was still seeking government approval for its plans to charge higher electricity rates.
“It is our general intention to increase our holdings [in Meralco],” Jose Ma. K. Lim, president and chief executive of Metro Pacific Investments, for his part said, reiterating earlier statements.
The company wants as much as 45%-47% in the distribution utility, Chief Finance Officer David J. Nicol added.
To date, the Pangilinan group is said to be the single largest shareholder in Meralco as subsidiary Beacon Electric Asset Holdings, Inc. holds a 34.8% stake while another unit PLDT Communication and Energy Ventures, Inc. holds 6.1%.
Mr. Nicol added that Metro Pacific Investments will transfer all Meralco shares to Beacon Electric in the next two years.
Meralco was the largest contributor to the listed holding firm’s net income for the first quarter.
Meralco profits
The power distributor posted a 64% surge in core income to P3.25 billion as revenues jumped by a quarter to P12.33 billion, according to a disclosure released yesterday.
Meralco reportedly contributed P437 million to profits of Metro Pacific Investments from January to March, up by 91% from last year.
The holding firm’s core profits in turn rose by 44% to P1.13 billion.
“All of our companies, including Metro Pacific Tollways on a pre-tax basis, achieved significant growth in profitability during the first quarter of 2011,” Mr. Lim said in the disclosure.
Maynilad
Maynilad Water Services, Inc. for its part posted a core income of P1.4 billion in the first quarter, up 18.6% from year-ago levels.
Revenues of Maynilad rose by 7% to P3.09 billion as non-revenue water was cut to 50% from 56% last year on the back of 17,345 resolved leaks while population coverage jumped to 7.5 million from 7.2 million.
Metro Pacific Investments secured P707 million from its shares in Maynilad, up by 40% from last year.
Moving forward, Maynilad plans to develop more water sources to improve its service.
“We are very conscious to develop alternative sources of bulk water supply so we diversify and promote the security of water supply,” Mr. Pangilinan said.
“In the near term, it is unlikely that Maynilad will go abroad for new investments. The need for effective and efficient water systems in the country is great,” Mr. Pangilinan added.
Metro Pacific Tollways Corp. (MPTC) meanwhile recorded an 8% drop in core income even as revenues rose by 12% to P1.61 billion. It contributed P353 million to Metro Pacific Investments, down by 12% from last year.
The revenue hike was attributed to higher toll fees but traffic on the toll road flattened reportedly due to high oil prices.
Tollways debt
Ramoncito S. Fernandez, MPTC president, added that its unit Manila North Tollways Corp. will be borrowing P10.6 billion, a bulk of which will be used to pay off older debts.
“Current debts of P8 billion will be refinanced and the remaining will be used for the Harbor Link Project,” Mr. Fernandez said ahead of the toll operator’s scheduled signing ceremony of financing facilities with lead arrangers BDO Capital and Investment Corp., BPI Capital Corp., and PNP Capital and Investment Corp.
Harbor Link is the road that will connect the North Luzon Expressway (NLEx) to the port area in Manila and Caloocan City.
Meanwhile, the construction of a new toll road dubbed Segment 9 slated to start in the fourth quarter is expected to be delayed, Mr. Pangilinan said, referring to 3.4-kilometer stretch that will connect the NLEx to MacArthur Highway in Valenzuela City.
“Given the pace of the right of way acquisition, it is unlikely that we will start [this year],” Mr. Pangilinan said, adding that the government has acquired only a tenth of the required land so far.
Hospitals
Lastly, the hospital group under the conglomerate registered a 44% core income growth to P160 million while revenues surged by a third to P2.08 billion, contributing P64 million to Metro Pacific from P41 million last year.
The group now has five hospitals, and hopes to have 15 in the next three to five years. The group wants to increase focus on marketing after improving operations in its hospitals, Augusto P. Palisoc, Jr., executive director and head of the hospital group, told reporters.
Share prices of Metro Pacific Investments were unchanged at P3.52 each yesterday.
Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of the Pangilinan-led Philippine Long Distance Telephone Co., has a minority stake in BusinessWorld. -- NJCM with KAM
“We will exceed the realized net income in 2010,” Metro Pacific Investments Chairman Manuel V. Pangilinan said in a briefing.
“The quantum of that number will depend on Manila Electric Co.’s own guidance,” Mr. Pangilinan added, noting that this power distributor subsidiary was still seeking government approval for its plans to charge higher electricity rates.
“It is our general intention to increase our holdings [in Meralco],” Jose Ma. K. Lim, president and chief executive of Metro Pacific Investments, for his part said, reiterating earlier statements.
The company wants as much as 45%-47% in the distribution utility, Chief Finance Officer David J. Nicol added.
To date, the Pangilinan group is said to be the single largest shareholder in Meralco as subsidiary Beacon Electric Asset Holdings, Inc. holds a 34.8% stake while another unit PLDT Communication and Energy Ventures, Inc. holds 6.1%.
Mr. Nicol added that Metro Pacific Investments will transfer all Meralco shares to Beacon Electric in the next two years.
Meralco was the largest contributor to the listed holding firm’s net income for the first quarter.
Meralco profits
The power distributor posted a 64% surge in core income to P3.25 billion as revenues jumped by a quarter to P12.33 billion, according to a disclosure released yesterday.
Meralco reportedly contributed P437 million to profits of Metro Pacific Investments from January to March, up by 91% from last year.
The holding firm’s core profits in turn rose by 44% to P1.13 billion.
“All of our companies, including Metro Pacific Tollways on a pre-tax basis, achieved significant growth in profitability during the first quarter of 2011,” Mr. Lim said in the disclosure.
Maynilad
Maynilad Water Services, Inc. for its part posted a core income of P1.4 billion in the first quarter, up 18.6% from year-ago levels.
Revenues of Maynilad rose by 7% to P3.09 billion as non-revenue water was cut to 50% from 56% last year on the back of 17,345 resolved leaks while population coverage jumped to 7.5 million from 7.2 million.
Metro Pacific Investments secured P707 million from its shares in Maynilad, up by 40% from last year.
Moving forward, Maynilad plans to develop more water sources to improve its service.
“We are very conscious to develop alternative sources of bulk water supply so we diversify and promote the security of water supply,” Mr. Pangilinan said.
“In the near term, it is unlikely that Maynilad will go abroad for new investments. The need for effective and efficient water systems in the country is great,” Mr. Pangilinan added.
Metro Pacific Tollways Corp. (MPTC) meanwhile recorded an 8% drop in core income even as revenues rose by 12% to P1.61 billion. It contributed P353 million to Metro Pacific Investments, down by 12% from last year.
The revenue hike was attributed to higher toll fees but traffic on the toll road flattened reportedly due to high oil prices.
Tollways debt
Ramoncito S. Fernandez, MPTC president, added that its unit Manila North Tollways Corp. will be borrowing P10.6 billion, a bulk of which will be used to pay off older debts.
“Current debts of P8 billion will be refinanced and the remaining will be used for the Harbor Link Project,” Mr. Fernandez said ahead of the toll operator’s scheduled signing ceremony of financing facilities with lead arrangers BDO Capital and Investment Corp., BPI Capital Corp., and PNP Capital and Investment Corp.
Harbor Link is the road that will connect the North Luzon Expressway (NLEx) to the port area in Manila and Caloocan City.
Meanwhile, the construction of a new toll road dubbed Segment 9 slated to start in the fourth quarter is expected to be delayed, Mr. Pangilinan said, referring to 3.4-kilometer stretch that will connect the NLEx to MacArthur Highway in Valenzuela City.
“Given the pace of the right of way acquisition, it is unlikely that we will start [this year],” Mr. Pangilinan said, adding that the government has acquired only a tenth of the required land so far.
Hospitals
Lastly, the hospital group under the conglomerate registered a 44% core income growth to P160 million while revenues surged by a third to P2.08 billion, contributing P64 million to Metro Pacific from P41 million last year.
The group now has five hospitals, and hopes to have 15 in the next three to five years. The group wants to increase focus on marketing after improving operations in its hospitals, Augusto P. Palisoc, Jr., executive director and head of the hospital group, told reporters.
Share prices of Metro Pacific Investments were unchanged at P3.52 each yesterday.
Mediaquest Holdings, Inc., a unit of the Beneficial Trust Fund of the Pangilinan-led Philippine Long Distance Telephone Co., has a minority stake in BusinessWorld. -- NJCM with KAM
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