MPIC income up 8% at end-Sept

Metro Pacific Investments Corp. (MPIC) grew its core net income by 8 percent at end September despite a slight slowdown in the third quarter due to higher inflation and weather-related woes.

In a disclosure, the company said Wednesday its consolidated net income grew to P12.2 in the first three quarters of the year, higher than the P11.3 billion recorded in the same period in 2017.

“Volume growth in [the third quarter] slowed due to a combination of rising inflation and unusually damp and cool weather, to which our residential customers in the power sector are especially sensitive,” said Jose Ma. K. Lim, MPIC president and CEO. The Pangilinan-led firm has established businesses in the power, toll roads, water, hospitals, rails and logistics businesses.

MPIC chief financial officer David Nicol said in a separate press briefing the company was targeting a core net income of around P15 billion this year amid a tempered outlook in the remaining quarter.

“Assuming our fourth quarter outlook is right about flat … you have a number of about P15 billion,” he said, when asked for this year’s core profit guidance.

Hitting P15 billion would mark a slightly higher performance from the P14.1 billion recorded in 2017.

The company’s nine-month core net income went up because of three main factors: an expanded power portfolio following further investments in Beacon Electric Asset Holdings Inc. last year; traffic growth for all domestic roads; steady volume growth coupled with inflation-linked tariff increases for Maynilad Water Services Inc.

The power business accounted for P8.5 billion or 55 percent of net operating income; toll roads contributed P3.3 billion or 21 percent; water contributed P3 billion or 20 percent; the hospitals group provided P586 million or 4 percent; and the rail, logistics and systems group delivered P26 million.