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Infrastructure holding firm Metro Pacific Investments Corp. grew its consolidated core net income by 16 percent year-on-year to P3.6 billion in the first three months of this year.
Reported net income attributable to parent company equity holders went up by 27 percent year-on-year to P3.8 billion.
This was driven by strong volumes across its portfolio as well as its increased investment in the power industry.
In particular, the growth was due to three main factors: an expanded power portfolio after making further investment in Beacon Electric Asset Holdings Inc. last year; robust traffic growth on all domestic roads; and, steady volume growth coupled with inflationary tariff increase at Maynilad Water Service Inc.
In terms of contribution to the company’s net operating income, power (distribution and generation) accounted for P2.4 billion or 54 percent of the aggregate contribution.
This was then followed by these businesses: tollroads, which contributed P1.1 billion or 24 percent of the total; water, which contributed P0.8 billion or 17 percent; the hospital group which provided P190 million or 4 percent, and the rail, logistics and systems group, which delivered the remaining one percent, or P35 million.
MPIC president and chief executive officer Jose Ma. K Lim said that the latest quarterly performance report showed that “consistent, thoughtful, and targeted investment pays off.”
“While it’s always pleasing to report growth in nominal profitability, the fact remains that our domestic toll roads portfolio and Maynilad are significantly under-recovering compared with the contractual provisions of their respective concessions,” Lim said, pointing to the pending tariff increase petitions.
“Robust growth in volumes in recent years does not in any sense change the need to bring these businesses into line with their agreed contract provisions,” he added.