MPIC nets P11.5B

Infrastructure holding firm Metro Pacific Investments Corp. (MPIC) grew net profit last year by 20 percent to P11.5 billion on higher core earnings from its power, tollroads and hospital businesses.

Excluding non-recurring items, MPIC saw a 17 percent growth in consolidated core net income to P12.1 billion. Non-recurring expense amounted to P650 million, mostly coming from project expenses and MPIC’s share in the impairment loss recognized by Manila Electric Co. on its investment in a Singapore-based power generator and electricity retailer.

In a disclosure on Wednesday, MPIC said its earnings were boosted by robust traffic growth on each of the roads held by Metro Pacific Tollways Corp., an expanded power portfolio through increased investment in Beacon Electric Asset Holdings Inc. and Global Business Power Corp., continuing growth in the
hospital group, first full-year contribution from Light Rail Manila Corp. and a profitable entry into the logistics sector.

In terms of contribution to the company’s net operating income, power distribution and generation accounted for P7.2 billion or 48 percent of total contribution. Water distribution, production and sewerage treatment contributed P3.6 billion or 24 percent. Tollroads contributed P3.5 billion or 23 percent of total while the hospital group contributed P589 million or 4 percent. The rail, logistics and systems group contributed P234 million or 1 percent of the total.

Manila Electric Co.’s core net profit last year rose by 4 percent to P19.6 billion due to the 8-percent increase in electricity consumption and higher interest income. This year.

“MPIC’s group-wide capital expenditure in 2016 was P40.5 billion, all of it contributing to the fabric of our nation and enhancing our capacity to serve the public. In addition, we have made an aggregate P32.7 billion of investments in our existing businesses and in expanding in to new areas in the course of the year. Our continuing earnings growth reflects significant volume increases for all our businesses, supported by our capital expenditures, together with intense focus on operational efficiencies,” said Jose Ma. Lim, MPIC president and chief executive officer.

Moving forward, however, Lim said MPIC’s shareholders were legitimately concerned about the continuing delay in resolving various tariff issues left over from the previous administration.