MPIC president and CEO Jose Maria Lim. (File photo courtesy of Asian Institute of Management)
MANILA -- Infrastructure conglomerate Metro Pacific Investments Corporation (MPIC) booked slightly higher core net income in the first half of 2019, driven by the growth of its power, water, toll roads, and hospital businesses.
MPIC reported on Thursday its consolidated core net income reached PHP8.7 billion in January to June from PHP8.6 billion during the same period last year.
In the second quarter alone, its core net income increased slightly to PHP5.1 billion from PHP5 billion.
MPIC President and Chief Executive Officer Jose Ma. Lim said the conglomerate continues to make major investments in new road, water, energy and logistics projects, which will take some time to complete and begin contributing to earnings.
“The earnings are somewhat plateauing now because of interest cost until these new investments generate new revenues,” he said in a press briefing in Makati on Thursday.
Power accounted for PHP6.1 billion or 54 percent of net operating income; toll roads -PHP2.4 billion or 22 percent; water -PHP2.3 billion or 21 percent; and the Hospitals Group -PHP400 million or 3 percent.
The Manila Electric Company’s (Meralco) core net income for the first half of 2019 rose 14 percent to HP12.3 billion, driven by a 5-percent increase in energy sales, lower interest expense from lower debt balance, and higher yield from investments.
Global Power core profit declined slightly to PHP1.2 billion from PHP1.3 billion, as volume sold fell 6 percent with the end of various short-term power supply agreements.
Metro Pacific Tollways Corporation (MPTC) recorded a 6-percent increase in core profit from PHP2.3 billion to PHP2.4 billion driven mainly by higher traffic on domestic roads and lower traffic on our regional roads.
MPIC’s water business, comprising of investments in Maynilad, the biggest water utility in the Philippines, and MetroPac Water Investments Corporation (MPW), contributed PHP2.3 billion to core profit in January to June.
Metro Pacific Hospital Holdings, Inc. (MPHHI) posted a 14-percent rise in aggregate revenues in the first half of 2019 on the increase in outpatient visits and growth in inpatient admissions. Core income grew 21 percent.
While Light Rail Manila Corporation (LRMC), the concessionaire for the operations, maintenance and extension of LRT 1, contributed PHP168 million to MPIC’s core income during the period. (PNA)
