Metro Pacific sets P79-B capex for ’17

Infrastructure holding firm Metro Pacific Investments Corp. (MPIC) is jacking up capital outlays this year to P79 billion to grow its power, toll road and water businesses.

“Prospects look good, volumes are still quite strong,” MPIC president Jose Ma. Lim said in a briefing Wednesday, noting however that pending tariff issues would affect outcomes this year.

Meralco is programmed to double its capital expenditure this year to P22 billion while some P24 billion will be spent on the tollroad business, MPIC chief finance officer David Nicol said.  Another P13 billion was earmarked for water utility Maynilad Water Services Inc.

Including capital spending for the railway and hospital businesses, the amount hits P79 billion, much higher than year-ago level.

“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,” Lim said.

The conglomerate 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 Meralco on its investment in a Singapore-based power generator and electricity retailer.

MPIC’s 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. —DORIS DUMLAO-ABADILLA