First Pacific group allots P81B capex

Manuel V. Pangilinan: Service quality and operational efficiency. FILE PHOTO

MANILA, Philippines—The First Pacific group led by businessman Manuel V. Pangilinan has earmarked about P81 billion in fresh capital outlay this year to grow its Philippine infrastructure, telecom and mining businesses.

For 2013, infrastructure holding firm Metro Pacific Investments Corp. (MPIC) expanded its net income attributable to shareholders of parent firm by 22 percent to P7.2 billion, led by water and power businesses.

“All our businesses achieved strong growth in profitability for the year,” MPIC president Jose Ma. Lim said. “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.”

The increase in core income was attributed to the more efficient management of head office expense but this was partially offset by the 16-percent rise in interest expense and a P4.7-billion loan contracted for the acquisition of the Manila-Cavitex Expressway.

For the MPIC group, about P44.5 billion has been budgeted for capital expenditures this year, about P18 billion of which would be for projects committed by water utility unit Maynilad Water Services Inc. and P15.5 billion for Manila Electric Co., MPIC chief finance officer David Nicol said in a briefing yesterday. For toll roads, the budget for capital expenditure is P7 billion while for hospitals, as much as P4 billion.

Including the P32-billion capital spending budget for telecom giant Philippine Long Distance Co. (PLDT) and as much as P4.6 billion for Philex Mining—two companies where First Pacific Co. Ltd. is likewise the controlling shareholder—total spending by the Pangilinan group of companies is estimated at P81 billion this year, according to Nicol.

For 2014, MPIC sees Maynilad’s billed water volume and Meralco’s electricity sales rising by 4 percent or about the same pace seen last year.

For toll roads, growth is seen at about 5 percent without tariff adjustment. The growth is less if there is an approved tariff increase as higher tariff typically reduces usage. In 2013, Metro Pacific Tollways Corp. (MPTC) posted a 6-percent increase in average daily traffic and 5-percent rise in average kilometers.

“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,” Pangilinan said in a statement.—Doris C. Dumlao