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METRO Pacific Investments Corp. (MPIC) on Wednesday said its profits
for the first three months this year fell due to the absence of
extraordinary gains recorded last year.
In a disclosure to the Philippine Stock
Exchange, the company said its net income, including the
non-recurring gains of P79.1 million from the recognition of the
excess of MPIC’s share of the net fair value of Medical Doctors
Inc. (MDI) over its conversion price as income, dropped from P1.52
billion last year to P138.5 million this year.
Last year’s numbers were restated to reflect
mainly the recognition of the final amount of the excess of the net
fair value of Maynilad Water Services Inc. (over its acquisition
cost as income.)
MPIC partnered with DMCI Holdings Inc. last year
to buy the government’s majority stake in Maynilad.
Excluding these gains, MPIC’s core net income
rose from P1 million the same period last year to P59.4 million
given “the strong showing” of Maynilad, Landco Pacific Corp. and
MDI, the owner and operator of Makati Medical Center. In May last
year, MPIC started recording its equity earnings in MDI.
MPIC earned P256.9 million from its equity share
in Maynilad, which posted a core net income of P611.7 million, or 93
percent higher than a year ago. The improvement can be traced to the
5 percent increase to 71.7 million cubic meters in total billed
volume year on year. Billed customers also rose by 3 percent to
710,450. Maynilad’s contribution to MPIC was attenuated by
financing charges, operating expenses and other group level
adjustments of about P436.8 million recorded at the consortium
level.
The parent firm’s real-estate business
recorded a core net income of P42 million, almost 78 percent higher
than a year ago, increasing its core profit contribution to MPIC by
78 percent to P21.4 million. Landco revenues for the period jumped
by 108.8 percent to P463.9 year on year on the back of the
“success” of its residential resort projects. These include
Ponderosa Leisure Farms, Amara en Terrazas, Playa Calatagan, Leisure
Farms, Terrazas de Punta Fuego and Montelago. Its flagship urban
community project, Tribeca, also contributed significantly to the
increase in revenues, MPIC said.
MDI brought in P20.8 million to MPIC
representing its 33.5 percent equitized income in the hospital.
Makati Med earned P73.9 million, 14.6 percent more than its profits
last year.
Revenues rose 7.8 percent to P757.5 million from
hospital services while educational services posted an increase of
11.6 percent to P24 million year on year.
“With MPIC’s current investment portfolio
performing steadily, we will for the remainder of the year be keen
on pursuing opportunities to expand our investments in the
healthcare and infrastructure sector, as well as new segments such
as agriculture, biofuels, hospitality, and mining. These initiatives
are intended to provide MPIC with an investment portfolio balanced
across industries that present exciting upsides,” Jose Ma. K. Lim,
MPIC president and chief executive, said.
Manuel V. Pangilinan, MPIC chairman said that
the improvement in Maynilad’s key performance indicators is
commensurate with its higher profit contribution to the parent
company. Its relief from financing charges incurred in acquiring the
utility firm “will allow us to enjoy a significantly improved
share of Maynilad’s net income,” he said, adding the parent
company expects to beat last year’s performance with the continued
strong showing of its property development and health-care services.
-- Likha C. Cuevas-Miel
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