Metro Pacific Q1 2023 profit up 38% to P4.3B

MANILA  -Manuel V. Pangilinan-led Metro Pacific Investments Corp. said core profits in the first quarter of the year jumped 38 percent to P4.3 billion on strong contributions from its power, toll road and water segments.

The company also cut interest costs by 3 percent as it implemented “strategic rerating and refinancing of expensive debt facilities over the past two years” amid the sharp rise in interest rates.

“Our strong performance for the first quarter reflects significant volume increases for our power, toll roads, water and healthcare businesses, bolstered by favorable tariff adjustments and savings resulting from operational efficiencies,” Pangilinan, chair and president of Metro Pacific, said in a stock exchange filing on Wednesday.

“We are also realizing the fruits of strategic investments in the power generation business, and we expect this to continue to be a driver of growth in the future,” he added.

Metro Pacific’s infrastructure portfolio includes Manila Electric Co., Maynilad Water Services Inc. and toll roads such as North Luzon Expressway, Subic Clark Tarlac Expressway and Cavite Laguna Expressway.

It also has a stake in the Light Trail Transit Line 1 and owns the country’s biggest private hospital group.

In its filing, the company said power accounted for P4.2 billion or 75 percent of operating income. This was followed by toll roads, which contributed P1.3 billion or 23 percent and water, which contributed P1.1 billion or 9 percent.

Other businesses, mainly light rail, healthcare, agribusiness, real estate, and fuel storage, incurred a net loss of P967 million, the filing showed.

Tender offer, delisting

Last month, Metro Pacific’s (MPIC) owners, Pangilinan himself and a new Japanese investor group that includes industrial giant Mitsui announced a P49-billion proposal to buy out the company’s minority stockholders before taking the firm private through a voluntary delisting process.

https://business.inquirer.net/397818/metro-pacific-to-go-private-after-p49-b-buyout-deal

“Regarding our application for voluntary delisting, the company’s board of directors and senior management echo the bidders’ observation that the intrinsic value of MPIC’s core investments in infrastructure in the Philippines has not been fully reflected in MPIC’s share price for some time,” Pangilinan said.

Investors and stockbrokerage houses, however, have flagged the low tender offer price of P4.63 per share.

“The tender offer and successful delisting will allow MPIC’s minority shareholders to realize a significant premium over the historical share prices of MPIC,” he said.

“At the same time, a delisted MPIC will be better aligned with the objectives of the bidders to continue investing in long-term infrastructure projects supporting sustainable economic growth in the Philippines. This also potentially paves the way for finally unlocking the value of MPIC’s core businesses through individual [initial public offerings], which could ultimately benefit shareholders,” he added.

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https://business.inquirer.net/389994/power-and-toll-road-units-lift-metro-pacific-2022-core-profit-by-15