Metro Pacific registered strong profit growth in first 3 months

Infrastructure holding firm Metro Pacific Investments Corp. (MPIC) registered a 32-percent year-on-year increase in its first quarter net profit to P2.3 billion as the company unlocked higher earnings contribution from its water, electricity, tollroad and hospital businesses.

Net profit in the first three months went up by 15 percent to P2.2 billion as the company booked non-recurring gains from the sale of real estate assets.

“All our businesses achieved growth in profitability for the first quarter, helped in large measure by debt refinancing last year,” said Jose Ma. Lim, MPIC president and chief executive officer. “We anticipate continued volume growth for the rest of 2014 but, given ongoing uncertainties over regulatory stability for water, road and power prices, it is prudent to defer giving away earnings guidance for the full year at this time.”

Maynilad Water Services contributed P1 billion to the company’s net operating income, accounting for 40 percent of the aggregate contribution. This represented a modest increase of 2 percent due to moderately higher water volumes sold.

The power business contributed P878 million to the holding firm—13 percent higher year-on-year.

Tollroad unit Metro Pacific Tollways delivered P600 million in earnings contribution—26 percent higher than that of last year.

MPIC’s hospital unit contributed P169 million—20 percent year-on-year.

“All our businesses are fully 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 MPIC chair Manuel V. Pangilinan.

“The results for the first quarter reflect continuing improvements in service levels as well as efficiency and financing gains for our operating companies,” he added.

On the arbitration case against water regulators, Maynilad president Victorico Vargas said hearings would take place in August and September.

If completed, he said, a decision should be expected by yearend. Doris C. Dumlao