Meralco investment lifts MPIC income

Published November 8, 2017, 10:00 PM By James A. Loyola

https://business.mb.com.ph/2017/11/08/meralco-investment-lifts-mpic-income/

Metro Pacific Investments Corporation reported a 22 percent rise in consolidated core net income to P11.3 billion for the first nine months of 2017 from P9.3 billion in the same period last year due mainly to its expanded presence in the power industry.

“Our earnings growth reflects our increased investment in the power sector together with strong volume growth at our tollroads and hospitals businesses,” said MPIC President Jose Ma. K. Lim.

Core net income was lifted by an expanded power portfolio through increased investment in Beacon Electric Asset Holdings, Inc.; robust traffic growth on all roads held by Metro Pacific Tollways Corporation; and continuing growth in the Hospital Group.

In terms of contribution to MPIC’s net operating income, Power accounted for P7.6 billion or 54 percent; Tollroads contributed P3.0 billion or 21 percent; Water contributed P2.8 billion or 20 percent; the Hospital Group provided P518 million or 4 percent; and the Rail, Logistics and Systems Group delivered P173 million or 1 percent.

Consolidated attributable net income rose 17 percent to P11.1 billion in the first nine months of 2017 from P9.5 billion in the year-earlier period.

Non-recurring expense amounted to P202 million and was largely made up of refinancing expenses, project expenses and a separation expense as a result of Maynilad’s redundancy program, largely offset by a realized gain on sale of shares in Meralco.

“I believe we are getting close to resolution with the Government of at least some of the tariff issues that have held back growth in earnings in recent years,” Lim said.

He noted that, “the government recognizes and values the extensive capital expenditures and service improvements we have made over many years and it respects the validity of our contracts.”

“We are working through the practicalities of long-delayed but achievable price increases while being fair to tax payers. We are jointly determined to prevent a repetition of these issues building up again in the future,” Lim said.

MPIC Chairman Manuel V. Pangilinan said “our selective expansion into ASEAN is continuing to build momentum. Meanwhile here in our home market, I believe that our various long standing regulatory issues are slowly seeing some light of day, and hopefully will develop into satisfactory closure finally. We expect full-year Core Net Income of P13.8 billion – a new record high.”