Metro Pacific doubles 2023 profit

METRO Pacific Investments Corp. (Metro Pacific) on Wednesday reported that its net income in 2023 doubled to P26.36 billion from P13.14 billion in the previous year.

In a statement, the company said the growth was mainly driven by the strong performance of its power business — Manila Electric Co. or Meralco — and higher water tariffs, plus a brisk 38-percent growth in core net income to P19.5 billion from P14.2 billion.

Power had the largest contribution to core net income at P15.2 billion, while toll roads and water contributed P5.8 billion and P4.4 billion, respectively.

“All our core business segments performed consistently well in 2023. Meralco’s power business is becoming a steady contributor to its growth with promising expansion opportunities in the pipeline, “MPIC Chairman, President and CEO Manuel Pangilinan said.

“Traffic in our toll roads under MPTC (Metro Pacific Tollways Corp.) is rising by double digits, and Maynilad is benefitting from the catch-up of delayed tariff increases,” he added.

By business segment, MPIC said that Meralco’s total revenues rose 4 percent to P443.6 billion — its “highest-ever figure” — due to increased pass-through charges and growth in volumes sold.

The power distributor’s consolidated core net income increased by 37 percent to P37.1 billion, driven by the growth in its power generation business.

Meanwhile, MPTC’s toll revenues jumped 19 percent to P27.2 billion on a combination of toll rate hikes and traffic growth in the Philippines and Indonesia.

Core net income rose by a mere 2 percent to P5.8 billion, tempered by the higher concession amortization on newly opened roads and the financing cost of the Jakarta-Cikampek Elevated Tollroad.

Moving to its water business, MPIC said Maynilad Water Services Inc.’s revenues grew 19 percent to P27.3 billion due to a 2 percent increment in billed volume and higher effective tariffs.

Maynilad’s core net income rose 51 percent to P9.1 billion on lower operating costs, but its capital expenditure (capex) swelled by 29 percent to P19.7 billion as it continued “to deliver on its obligations under its regulator-approved business plan.”

This year, the company plans a capex budget of about P140 billion, with the bulk to be allocated to Meralco, MPTC and Maynilad, MPIC Chief Finance, Risk and Sustainability Officer Chaye Cabal-Revilla said.

She added that funds for the 2024 capex program would be sourced “through a combination of loans ... getting the values of our existing assets, and dividends as well from our core businesses.”

Looking forward, MPIC forecasts achieving doubledigit growth for both core and reported net incomes this year, still driven again by its core businesses.

“We are working hard to make 2024 another banner year for Metro Pacific and our operating companies on the expectation that the greater private sector participation in infrastructure development will help propel our nation to a higher growth rate in the near term and further ahead,” Pangilinan said.