Metro Pacific Investments net profit up 5% to P5.2B

In terms of contribution to net operating income of Metro Pacific Investments, Maynilad Water Services accounted for 43 percent, followed by Manila Electric Co., 30 percent; Metro Pacific Tollways, 20 percent; and the hospital group, 7 percent. Screen grab maynilad.com.ph

MANILA, Philippines—Infrastructure giant Metro Pacific Investments Corp. said its net income in the nine months through September rose 5 percent to P5.2 billion, a filing at the Philippine Stock Exchange showed.

The company, which is involved in water distribution, power generation, toll roads and hospitals, said revenues increased 11 percent to P20.5 billion. Core earnings also grew 12 percent to P5.6 billion.

The rise in core profit was due mainly to robust earnings growth at Metro Pacific Tollways Corp., which operates North Luzon Expressway and Manila Cavite Expressway, and Maynilad Water Services Inc., a water concessionaire for Metro Manila’s west zone.

In terms of contribution to net operating income, Maynilad accounted for 43 percent, Manila Electric Co. contributed 30 percent, Metro Pacific Tollways accounted for 20 percent and the hospital group accounted for 7 percent.

“All our businesses achieved strong growth in profitability for the first nine months of the year, leaving us well placed for a strong 2013 as a whole,” Jose Ma. K. Lim, Metro Pacific president and CEO, said in the statement.

“We are reviewing the outlook for 2014 and the only restraint on our optimism is concern over regulators’ management of water tariffs and road tolls,” he added.

Maynilad, the biggest contributor, recently suffered a setback after regulator Metropolitan Waterworks and Sewerage System (MWSS) denied the company’s application for an upward adjustment and instead ordered a negative adjustment of 4.82 percent, or P1.46 per cubic meter.

The decision was for Maynilad’s business plan for the determination of standard rates for 2013 to 2017. MWSS also ordered a reduction for the east zone concessionaire, Manila Water Co. Inc.

“Maynilad does not accept the tariff proposal of MWSS and [on Oct. 4] it filed a notice of dispute at the Secretariat of the International Chamber of Commerce International Court of Arbitration for resolution,” Metro Pacific said.