MPIC says 2013 profit looks strong, 2014 uncertain

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The infrastructure conglomerate says it can't provide pointers for 2014 due to uncertainties surrounding tariffs of water and toll road units

ROBUST 9 MONTHS. Infra conglomerate MPIC says all its business units performed well in the Jan-Sept period. Photo taken from MPIC website

MANILA, Philippines – Infrastructure conglomerate Metro Pacific Investments Corporation (MPIC) said it is on track to meeting its 2013 profit goal after a strong first 9 months, but outlook for 2014 remains uncertain.

MPIC president and CEO Jose Ma. K. Lim said all business units booked strong growth in January to September, “leaving us well-placed for a strong 2013 as a whole.”

But he said next year’s outlook is being reviewed due to concern over “regulators’ management of water tariffs and road tolls.”

MPIC owns utilities Manila Electric Company (Meralco) and Maynilad Water Services Inc., tollroad operator Metro Pacific and Tollways Corporation (MPTC), and several hospitals under its hospital group.

MPIC posted a net income of P5.2 billion in January to September, up 5% from P5 billion a year ago.

Minus non-recurring charges, core net income rose by a faster 12% to P5.6 billion from P5 billion last year.

Of the income, Maynilad accounted for 43%, Meralco for 30%, MPTC for 20% and the hospital group for 7%.

Earlier this year, Maynilad sought a tariff increase from Metropolitan Waterworks and Sewerage System (MWSS), but the regulator denied its petition. Instead, MWSS ordered a reduction in Maynilad’s basic charge. Maynilad is questioning the order in a dispute filed with the International Chamber of Commerce.

On the other hand, MPTC is still awaiting approval of toll rate adjustments for the North Luzon Expressway and the Manila-Cavite Expressway “which are overdue by as long as a year and a half or more.”

MPIC chairman Manuel Pangilinan said, “the uncertainties surrounding the Maynilad rate rebasing and pending tariff increases on our tollways mean we can’t at this stage provide reliable pointers for 2014.”

Nevertheless, “outlook for full year (2013) core net income growth looks positive,” he noted.

MPIC expects its core net income this year to reach over P7 billion. – Rappler.com

 

 

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