Listed Metro Pacific Investments Corp.’s (MPIC) core net income fell to P5.3 billion in the first half of 2020 on the impact of lockdown measures aimed at curbing the spread of the coronavirus disease 2019 (Covid-19) in the country.
In a disclosure on Wednesday, the Pangilinan-led conglomerate said the figure, a 38-percent decrease from P8.7 billion in the same period last year, was driven by the community quarantines imposed by the government in the period.
These lockdowns, it added, reduced toll road traffic, suspended rail services and cut commercial and industrial demand for water and power.
“The decline in our half-year earnings is mainly due to the government’s Covid-19 movement restrictions, which affected transportation and transportation-related businesses. Our power and water operations fared much better,” MPIC Chairman Manuel V. Pangilinan was quoted as saying in the disclosure.
The firm’s consolidated net income attributable to shareholders dropped to P3 billion in January to June from P8.1 billion, attributed to its lower core income and the Manila Electric Co.’s (Meralco) provisioning against the carrying value of Pacific Light Power, a gas-fired power plant in Singapore.
Its power businesses accounted for 68 percent or P5.2 billion of net operating income; water segment, 23 percent or P1.8 billion; and toll road business, 12 percent or P900 million.
MPIC’s other businesses, mainly hospitals, rail and logistics, incurred a P236-million loss.
The power business posted a 14-percent decrease in its net income contribution in the period on account of reduced contributions from Meralco and Global Business Power Corp.
Meralco’s core net income declined by 14 percent to P10.6 billion in the first six months, while Global Power saw a 9-percent decline in its core net income to P1.1 billion.
Metro Pacific Tollways Corp. recorded a 62-percent drop in its core net income to P900
million from P2.4 billion year-on-year.
The water segment contributed P1.8 billion to the core net income, most of which from Maynilad Water Services Inc.
Light Rail Manila Corp. incurred a P175-million loss during the period because of the suspension of mass transportation operations as part of lockdown measures.
The impact of the pandemic and quarantine also dragged Metro Pacific Hospital Holdings Inc.’s consolidated core income by 93 percent to P46 million in the period.
MPIC shares inched up by 1.3 percent or 4 centavos to finish at P3.11 each on Wednesday.