MPIC core income rises to P3.5 B in 3rd quarter

Metro Pacific Investments Corp. (MPIC) continued to post an improvement in its core net income in the third quarter and is even looking at a much better year in 2022, which could see the listing of two subsidiaries.

MPIC said consolidated third quarter core net income grew by 44 percent to P3.5 billion, bringing its nine-month core income to P9.5 billion, up 23 percent from 2020 and putting the company on track to hitting its guidance for the year of P12 billion.

The company’s businesses include toll roads and infrastructure through Metro Pacific Tollways Corp. (MPTC); hospitals through Metro Pacific Hospital Holdings Inc. (MPHI); water through Maynilad Water Services Inc. (Maynilad); power distribution through Manila Electric Company (Meralco); transport through Light Rail Manila Corp. and logistics through MetroPac Movers Inc.

“The steady pace of growth that we are seeing across our core businesses has been very encouraging. We anticipate these trends to continue now that more commercial establishments are able to re-open with the relaxation of mobility restrictions. Economic activity has historically peaked during the holiday season and so we hope to end the year on a much more positive disposition compared to last year,” MPIC president and CEO Jose Ma. Lim said during a press briefing.

Against this backdrop, MPIC chairman Manuel V. Pangilinan said 2022 should be a better year for the company with the expected recovery of the economy.

“This COVID19 health crisis has forced us to reassess our priorities and draw the line between what’s essential and what’s not. Critical to us at MPIC is service continuity amidst recurring mobility restrictions, and we have worked hard to deliver on that commitment to the communities we serve. As we look forward to 2022, we draw our attention to other essential priorities, foremost of which are innovation and digital transformation. We have been laying the groundwork across our core businesses with Meralco implementing digital solutions to address customer needs, Maynilad using the most advanced leak detection technologies, and MPTC inaugurating its digital mobility solutions. We intend to further explore opportunities in the digital space especially those that will make our operations and facilities even more efficient,” Pangilinan said.

In terms of growth and expansion, Pangilinan said the company may list its tollways and hospital businesses in the next two years.

MPTC may do an initial public offering late 2022 or 2023 after earnings have stabilized, said its president and CEO Rodrigo Franco.

Pangilinan said MPTC may also invite a strategic partner to anchor the IPO, but no decision has yet been made on the matter.

MPIC’s third quarter growth came from improved traffic on its toll roads and higher volume of electricity sold by Meralco, the power distribution arm.

Consolidated reported net income in the third quarter, however, was flat at P2 billion but was up 147 percent to P12.4 billion during the nine-month period following the gain recognized from the sale of Global Business Power and Don Muang Tollways, two major assets sold to optimize MPIC’s portfolio.

Third quarter revenue rose by 10 percent to P99.8 billion while nine-month revenue rose seven percent to P286.7 billion.

Power contributed P8.4 billion or 64 percent of the total, toll roads (P2.7 billion or 20 percent) and water (P2.2 billion or 17 percent).

Light rail and logistics generated an overall loss of P384 million owing to the capacity limitation on the ridership of LRT-1 and the discontinuance of warehousing operations, respectively. These losses were partially offset by the Hospital Group’s contribution of P237 million, MPIC said.

Lim said MPIC continues to diversify into less regulated businesses such as logistics and tourism.

For its logistics expansion, the company is bidding for the fuel storage assets of Pilipinas Shell in Visayas and Mindanao and is also looking at venturing into ecommerce and how it can position itself in the food infrastructure business, Lim said.

MPIC is likewise accelerating investments in the renewable energy sector.