H1 profit climbs 17% to P7.8B
CONGLOMERATE Metro Pacific Investments Corp. (MPIC) said Friday its core net income for the first half of the year rose 17 percent to P7.8 billion from P6.6 billion a year ago on the back of its expanded presence in the power industry.
In a disclosure to the stock exchange, it said core net income was driven by tollways unit Metro Pacific Tollways Corp. (MPTC), an expanded power portfolio through increased investment in Beacon Electric Asset Holdings, Inc., and continuing growth in its Hospital Group.
MPIC said Power (distribution and generation) accounted for 55 percent or P5.3 billion of aggregate contribution to net operating income; followed by Tollroads with 21 percent or P2 billion; Water (distribution, production and sewage treatment) with 19 percent or P1.8 billion; the Hospital Group with 3 percent or P308 million; and the Logistics Systems Group with 2 percent or P104 million.
It said consolidated net income attributable to owners of the parent company grew 12 percent to P7.8 billion in the first half of the year as compared to P7 billion in the same period last year.
Non-recurring income amounted to P21 million, mainly consisting of a realized gain on the sale of shares in Manila Electric Company, “which was largely offset by refinancing expenses, project expenses and one-time separation expense as a result of Maynilad’s redundancy program.”
“Our earnings growth reflects our increased investment in the power sector together with strong volume growth at our tollroads and hospitals businesses,” MPIC President and Chief Executive Officer Jose Maria Lim said.
“The combination of years of capital expenditures to enhance the reach and quality of our services together with the failure to date to implement tariff increases that our water, tollway and rail businesses are entitled to is a drag on growth in core EPS [earnings per share],” he added.
“Tariff delays are impacting investor sentiment,” he noted.
He said Maynilad Water Services Inc. won the arbitration claim in Singapore calling for compensation from the Philippine government for payment of past due revenues, which needs to be operationalized.
But the matter of the tariff to be charged to the public, as with the parent’s other businesses, remains unresolved, he said, continuing to constrain funding for new projects.
MPIC declared an interim dividend of 3.45 centavos per common share payable bon September 26, 2017 to shareholders of record onSeptember 1, 2017.
Established 2006, MPIC holds businessman Manny V. Pangilinan’s investments in water utilities (Maynilad), toll roads (MPTC and Manila North Tollways Corp.), power and electricity distribution (Beacon Electric, Global Business Power Corp. and Meralco), healthcare services (MPHHI), and railway, logistics and ticketing (Light Rail Manila Corp. and MetroPac Movers Inc.).