Metro Pacific expects higher core net income in 2016

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Metro Pacific expects higher core net income in 2016
During the first half of the year, Metro Pacific sees a 13% increase in its core net income to P6.6 billion, on the back of strong growth in all its operations

MANILA, Philippines – Infrastructure conglomerate Metro Pacific Investments Corporation (MPIC) expects a higher core net income in 2016 at P11.5 billion, as it is optimistic on its core businesses’ strong volume growth for the rest of the year.

With vast expansion opportunities for its tollways, hospital, and power businesses, MPIC said it expects its core net income for the year to be 11.6% higher than 2015’s P10.3 billion.

MPIC president Jose Maria Lim said the company’s core subsidiaries are also on the lookout for expansion opportunities, while its recent acquisition of Global Business Power Corporation is expected to offer immediate cash returns and solid medium-term expansion.

Meanwhile, Lim said the firm’s tollway unit is looking at investment opportunities in Malaysia and Indonesia, while its hospital subsidiary is studying the possibility of building its first hospital.

At the same time, the group’s power unit is considering venturing into renewable energy, particularly solar.

Continuous net income surge

During the first half of the year, Metro Pacific reported a 13% increase in core net income to P6.6 billion from P5.9 billion in the first half of 2015, on the back of strong growth in all its operations.

Lim said core net income was lifted by strong traffic growth on all the roads held by Metro Pacific Tollways Corporation, an expanded power portfolio through increased investment in Beacon Electric Asset Holdings and Global Business Power, as well as continuing growth in the hospital group.

In terms of contribution to the company’s net operating income, the power group accounted for P4.2 billion, while the water utility and tollroad units each contributed P1.8 billion.

The hospital group also contributed P249 million while the rail systems contributed P116 million.

“Our strong earnings growth reflects significant volume increases for all our businesses together with our intense focus on operational efficiencies which have been achieved at the cost of years of elevated capital expenditures,” Lim said.

He said the MPIC’s earnings “would be still stronger were it not for the ongoing delay in tariff increases for our water and tollroads businesses” but added that MPIC is “greatly encouraged by initial indications from the new administration that we will be able to move to a swift resolution of these key pending matters.”

Lim added: “I expect continued strong volume growth for the rest of the year from all our businesses. We have seen encouraging post-acquisition performance at Global Power, offering both immediate attractive cash returns and solid medium-term expansion.” – Rappler.com

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