MPIC net profit grew 76% to P5.06B in 2011

MANILA, Philippines—Infrastructure-holding firm Metro Pacific Investments Corp. grew its 2011 net profit by 76 percent to P5.06 billion, boosted mostly by higher earnings from its water and power businesses.

In a disclosure on Thursday, MPIC also reported that the core net profit had gone up by 32 percent to P5.10 billion while consolidated revenues had risen by 19 percent year on-year to P22 billion.

The rise in core net income is due mainly to higher profit from Maynilad Water Services Inc. (MWSI) and from Manila Electric Co. (Meralco), as well as a strong performance across the hospital group.

The consolidated reported net income attributable to owners of the parent company of P5.06 billion reflected some net foreign exchange loss and non-recurring items worth around P42 million.

On the other hand, the rise in core net income was due mainly to higher profit from the Maynilad Water Services Inc. and from the Manila Electric Co., as well as a strong performance across the hospital group.

Maynilad reported higher-billed volume and tariffs, with Meralco also benefiting from higher tariffs. Metro Pacific Tollways Corp. (MPTC) delivered flat earnings in 2011 compared with a year before, despite the expiry of its income tax holiday at the end of 2010.

Maynilad accounted for P3.1 billion, or 48 percent of the MPIC’s core net income representing MPIC’s attributable interest. Meralco contributed P1.69 billion, or 26 percent, while MPTC delivered P1.46 billion, or 22 percent of core net income. The hospital group contributed 4 percent of the total.

“All our companies achieved strong growth in profitability for 2011 and are well placed for continued growth in 2012,” said Jose Ma. Lim, MPIC president. “The equity-raising we undertook last July has been partly deployed into our investments in Asian Hospital and Meralco, and we are well placed to fund further investments from our existing capital base.”

The company’s final dividend for 2011 is 1.50 centavos per share, bringing the dividends for the full year to 2.5 centavos per share. “In the years to 2015 we will gradually increase our dividend pay-out ratio toward 25 percent of core net income.”

MPIC chairman Manuel V. Pangilinan said in a press briefing that the holding firm’s core earnings this 2012 would likely be better than last year’s.