MPIC eyes modest 2013 core earnings

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Despite the significant improvement in its first-half core profit, the Manuel Pangilinan-led infrastructure conglomerate Metro Pacific Investment Corp. is looking to end this year with a modest full-year income growth of P7 billion.

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Pangilinan, the MPIC chairman, said that the group has set a modest full-year income target after posting P6.5 billion in core earnings in 2012.

“The outlook for our full-year core net income growth looks positive. At this stage, we are guiding to P7-billion core net income for the full year, while being mindful of uncertainties surrounding the Maynilad [Water Services Inc.] rate rebasing and pending tariff increases on our tollways,” he added.

For the first half of the year, MPIC registered a consolidated core net income of P3.9 billion, up 14 percent over the P3.5 billion recorded in the first half of 2012.

Jose Lim, president and chief executive officer of MPIC, said in a briefing held on Thursday that its consolidated reported net income attributable to owners of the parent company stood at P3.7 billion for the period, compared with the P3.4 billion recorded in the first half of 2012. This is an improvement of 7 percent year-on-year.

The rise in core net income, according to him, was mainly from higher profit contributions from Manila Electric Co. (Meralco) and Maynilad, which is attributable to a combination of tariff progression and slightly higher volumes, among others.

The conglomerate also attributed the growth to the contribution of Metro Pacific Tollways Corp., which benefited from strong traffic growth, interest savings on the North-Luzon Expressway and profit contribution from the recently acquired Cavite Expressway.

MPIC also saw improvements in its hospital business, which recorded cost reduction and higher patient revenues.

In terms of contribution to the group’s net operating income representing MPIC’s attributable interest in each business units, Maynilad accounted for P2.1 billion, or 44 percent of the aggregate contribution, Meralco contributed P1.4 billion, or 30 percent of the total, while MPTC delivered P1 billion, or 20 percent. The hospital group contributed P262 million, or 6 percent of the total.

“All our businesses are performing well,” Lim said.

Pangilinan added that the strong results for the first half of the year also reflect significant improvements in its service levels and efficiency gains for all its operating companies.

“Our businesses continue to be focused on service quality and operation efficiency, while growing core profitability and cash flows,” he said.

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