MPIC core earnings up by 24% to P7.5 B in H1

Metro Pacific Investments Corp. (MPIC), the tollways and infrastructure conglomerate chaired by Manuel V. Pangilinan, reported a consolidated core net income of P7.5 billion for the first half of 2022, up 24 percent from a year earlier.

On the other hand, reported net income was down nine percent to P9.5 billion from the same period last year when the company reported a gain from the sale of Global Business Power and Don Muang Tollways.

Pangilinan expressed hope that along with the recovery of the economy, MPIC’s full-year 2022 numbers could be closer to pre-pandemic 2019 core net income of P15.6 billion.

Power accounted for P5.9 billion or 60 percent of net operating income, toll roads contributed P2.5 billion or 26 percent, and water contributed P1.4 billion or 15 percent.

On the other hand, real estate, hospitals, fuel storage, and light rail, incurred a net loss of P35 million.

Manila Electric Co.’s core net income increased by 15 percent to P13.1 billion, driven by strong energy sales and higher contributions from the power generation business, Meralco PowerGen Corp. or MGen. Reported net income improved by 32 percent, benefiting from lower taxes and foreign exchange gains.

Metro Pacific Tollroads Corp. reported revenues of P10.5 billion, up 26 percent due to record high traffic growth and toll increases implemented from the latter part of 2021 to the first half of the year in the Philippines and Indonesia. Core net income rose 33 percent to P2.5 billion.

Maynilad recorded P11.2 billion in revenues, almost the same as the year earlier due to lower billed volume, which in turn was offset by higher effective tariffs as commercial and industrial demand returned to growth. Core net income declined one percent to P3 billion due to higher concession amortization from completed capital expenditures.

Light Rail Manila Corp., which operates LRT-1, grew revenues to P767 million as ridership rose by 52 percent. However, the company still incurred a net loss of P329 million due to the start of amortization of concession assets and borrowing costs.

Metro Pacific Hospital Holdings Inc. saw its revenues decline by three percent to P9.4 billion due to the drop in COVID-19 cases, which consequently lowered the average revenue per patient. Consolidated core net income declined by 48 percent to P370 million, driven by higher personnel costs with additional headcount and higher depreciation from completed capital expenditures on the resumption of expansion plans.

As for MPIC’s agribusiness, the conglomerate entered into a strategic partnership with the Carmen’s Best Group.

Under the partnership, the Carmen’s Best Group integrated its assets and operations into The Laguna Creamery Inc. (TLCI), with MPIC owning a 51 percent equity interest in TLCI and the Carmen’s Best Group retaining a 49 percent equity interest.