Water, power units boost Metro Pacific’s 2013 income

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Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) saw its net profit jump by almost a quarter in 2013 on the robust performance of its subsidiaries.

MPIC’s net income rose 24.58 percent to P11.479 billion in 2013, while operating revenue grew 11.04 percent to P30.9 billion. It said cost of sales and services increased at a slower pace of 6.06 percent to P11.8 billion, from P11.2 billion in 2012.

Core net income—which strips off one-time gains and losses—stood at P7.2 billion at the end of 2013, up 10 percent from P6.6 billion in 2012, as each of its four main businesses delivered strong growth.

Jose Ma. Lim, Metro Pacific president, attributed the strong results to the robust earnings growth at Metro Pacific Tollways Corp. (MPTC), due to traffic growth and the acquisition of the Manila-Cavite Expressway (Cavitex); growth at Maynilad Water Services Inc. and Manila Electric Co., due to a combination of tariff progression and higher volumes; and strong organic growth and investment benefits from the Hospital Group in 2013.


“We anticipate continued strong volume growth in 2014 for all our subsidiaries, but given uncertainties over regulatory stability for water, road and power prices, we are in no position to give earnings guidance for 2014,” Lim said.

In terms of contribution to the company’s net operating income, Maynilad accounted for P3.8 billion or 44 percent of the aggregate contribution, Meralco contributed P2.3 billion or 27 percent of the total, and MPTC delivered P1.9 billion or 22 percent. The Hospital Group, as its president Augusto Palisoc noted, also contributed P581 million or seven percent of the total.

“All our businesses are relentlessly focused on service quality and operational efficiency, while growing our sales and core profitability to improve the lives of all our customers — providing first-class medical care, offering safe and efficient road transportation, delivering electricity to power homes and businesses, and piping water to improve consumption and sanitation,” said Metro Pacific chairman Manuel V. Pangilinan.

“The strong results for 2013 reflect continuing improvements in service levels as well as efficiency gains for all our operating companies. Regulatory uncertainties in respect of certain of our core subsidiaries mean we are not in a position, at this time, to provide guidance for 2014,” Pangilinan added, echoing Lim’s statement.

As for MPIC’s overseas ventures, Lim said the group has already started operations on plant investments in Nigeria and Singapore and are now looking for tollway and water supply project opportunities in Thailand.

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