MPIC sets P100 B capex

Metro Pacific Investments Corp., (MPIC), the infrastructure and tollways conglomerate chaired by tycoon Manuel V. Pangilinan, has earmarked roughly P100 billion for its capital expenditures this year.

“We are looking to do P100 billion this year,” MPIC chief financial officer David Nicol told The STAR in a recent interview.

He said much of the capex is already funded.

The final amount would depend on the results of the resolution of the conglomerate’s regulatory issues both for its water and toll roads businesses.

“Much of that will depend on various regulatory approvals,” Nicol said.

However, he expressed optimism the company would finally hurdle much of its regulatory issues this year.

At present, MPIC is facing regulatory issues for its water utility arm, Maynilad Water Services Inc. It has been seeking approval for a tariff increase. It was not able to increase tariffs in the 2013 to 2017 business cycle plan.

MPIC president Jose Ma. K. Lim said the conglomer- ate has made partial progress following a constructive and professional rate rebasing when it was awarded a 16.2 percent tariff increase – excluding inflation – which would be implemented on a staggered basis.

However, the rebasing didn’t address the corporate income tax recovery issue inherited from the previous administration which MPIC continues to pursue, Lim said.

On the toll roads, the company also has pending tariff increase issues.

In terms of funding for the capex, Nicol said MPIC signed in December a P20 billion 10-year syndicated term loan facility.

This is primarily to fund the company’s capital expenditure requirements.

For this loan, MPIC engaged BDO Capital & Investment Corp. and BPI Capital Corp. as arrangers and book runners.

MPIC is set to release its 2018 fourth quarter and fullyear financials on March 5.

In all, the conglomerate has a 2018 profit guidance of roughly P15 billion in core net income, up 6.4 percent from P14.1 billion last year.

In the nine months of 2018, the company’s consolidated reported net income attributable to owners of the parent company rose 12 percent to P12.5 billion during the period, while non-recurring income amounted to P297 million, compared with non- recurring expenses of P202 million a year earlier, driven mainly by foreign exchange gains at Manila Electric Co.

It reported an eight percent increase in consolidated core net income to P12.2 billion in the nine months to September 2018.

MPIC, one of the coun- try’s biggest conglomerates, has investments in tollways and infrastructure, water utility, power, logistics and hospitals.

The company expects minimal growth in the 2018 fourth quarter core net income compared with the same quarter in 2017.