MPIC core net income up

The First Pacific group led by businessman Manuel V. Pangilinan is pumping a total of P120 billion into the domestic economy this year with the capital outlays budgeted by its infrastructure, telecom, mining and sugar businesses.

Infrastructure holding firm Metro Pacific Investments Corp. (MPIC) alone has earmarked P70 billion for capital expenditures this year spread across its power generation, tollroad, water, mass transportation businesses and hospital businesses.

MPIC announced on Tuesday that its consolidated core net income last year rose 22 percent to P10.3 billion, buoyed by the strong traffic growth on tollroads run by Metro Pacific Tollways Corp.and a higher shareholding in Manila North Tollways Corp., higher billed volume at Maynilad Water Services Inc., greater effective stake in Manila Electric Co. and continuing growth in the hospital group.

Consolidated net income attributable to owners of the parent company jumped 20 percent to P9.6 billion in 2015. Non-recurring items included costs relating to the increased shareholding in Meralco and project expenses.

In 2015, Maynilad grew its water billing by 4 percent as a result of improved collection performance and lower personnel cost while the power business expanded energy sales by 6 percent. The tollroads saw a 9-percent increase in average daily traffic.

Maynilad contributed P4.8 billion or 38 percent of the company’s net operating income; Meralco accounted for P4.5 billion or 36 percent; the tollroads delivered P2.8 billion or 22 percent, and the hospital group contributed P473 million or 4 percent.

While Maynilad and Meralco have almost similar contributions this year, MPIC president Jose Ma. Lim said Meralco might become the biggest business this 2016. He noted that Maynilad’s share would decline due to the expiration of its income tax holiday.

MPIC chief finance officer David Nicol said the big components of MPIC’s P70-billion capital spending were P25-P26 billion for the construction of new power generation capacity for Meralco, P18 billion for tollroads, P14 billion for Maynilad and P9 billion for Light Railway Transit 1.