METRO Pacific Investments Corp. (MPIC) reported 7-percent growth in its core net income in the first quarter this year and said it is hoping to attain a better result for the whole year than the P10.3 billion recorded in 2015 despite continued regulatory difficulties.
MPIC Chairman Manuel Pangilinan told reporters they are hoping for higher net income growth for the rest of the year although uncertainties in the regulatory front remain.
For the first three months of the year, MPIC’s consolidated core net income grew 7 percent to P2.7 billion versus the P2.6 billion realized during the same period last year.
“The strong results for the quarter reflect continuing improvements in service levels as well as efficiency and financial gains for our operating companies,” Pangilinan said.
“Given continuing regulatory uncertainties and the impending change in government, we have maintained a positive outlook for the year,” he added.
MPIC President and Chief Executive Officer Jose Ma. Lim attributed the growth in MPIC’s core net income to the strong traffic growth on all roads held by Metro Pacific Tollways Corp. (MPTC) as well as contributions from SCTEX and CII Bridges and Roads Investment Joint Stock Co. (CII B&R); higher economic interest in Manila Electric Co. (Meralco); and consistent growth in the hospital group.
Meralco accounted for P1.6 billion or 47 percent of MPIC’s operating income; Maynilad Water Services Inc. contributed P843 million or 24 percent of the total; the toll roads businesses delivered P833 million or 24 percent; the hospital group contributed P134 million or 4 percent of the total; and the rail and systems contributed P50 million or 1 percent of the total.
“Our strong earnings growth reflects significant volume increases for all our businesses together with our intense focus on operational efficiencies. This has been achieved at the cost of years of elevated capital expenditures,” Lim said.
Consolidated reported net income attributable to owners of the parent company increased by 8 percent to P2.6 billion during the first quarter of 2016 from P2.4 billion posted during the comparable period last year.
“Our earnings would be still stronger if we were simply allowed to implement tariff increases that our water, tollway and rail businesses are entitled to,” Lim added.