earnings reports

Metro Pacific confident of hitting P12-billion profit in 2021

Aika Rey
Metro Pacific confident of hitting P12-billion profit in 2021

MPIC

'We are seeing that people are no longer letting the virus run their lives and are able to bounce back more quickly than we did during the start of the pandemic,' says Metro Pacific Investments Corporation chairman Manny Pangilinan

Manny Pangilinan-led Metro Pacific Investments Corporation (MPIC) saw its consolidated core net income grow 13% to P6 billion in the first half of 2021.

MPIC said the figure is a “substantial improvement” following the 26% decline in the first quarter. The conglomerate attributes the improved bottom line to the contributions of its power and toll roads businesses.

MPIC also said the impact of the Corporate Recovery and Tax Incentives for Enterprises law, which lowered tax rates from 30% to 25%, partially helped drive its growth.

Despite the threat of the COVID-19 Delta variant which prompted the national government to again lock down borders, MPIC remains confident it will hit its P12-billion target for the year.

“We are confident that our core net income guidance of at least P12 billion for full-year 2021 is still attainable. We are seeing that people are no longer letting the virus run their lives and are able to bounce back more quickly than we did during the start of the pandemic,” Pangilinan said.

“As such we expect that the volumes of our core businesses will continue to recover towards the end of the year with the continuous inoculation efforts for the rest of the population,” he added.

Here are the infrastructure conglomerate’s financial highlights:

Manila Electric Company (Meralco)

Meralco’s profits for the first half of 2021 increased by 8% to P11.4 billion as total energy sales grew by 7%.

The industrial segment showed signs of recovery as sales volume improved by 23% thanks to the construction, steel, and cement industries. Residential sales inched up by 3%.

Metro Pacific Tollways Corporation (MPTC)

MPTC bounced back as its core income grew year-on-year to P1.9 billion, with revenues climbing 36% to P8.3 billion given the relaxation of quarantine restrictions and the vaccine rollout.

Average daily vehicle entries grew 38% to 470,844 from 341,241 in the same period in 2020. Traffic on international toll roads also improved with the Vietnam business seeing a 31% increase and 15% growth for Indonesia.

Maynilad Water Services

Maynilad’s core income fell by 15% to P3 billion in 2021, given the higher amortization and depreciation from substantial investments in water and sewerage treatments.

Revenues slipped 2% to P11.2 billion due to a 3% drop in billed volumes, but this was partly offset by higher average tariffs.

Light Rail Manila Corporation (LRMC)

LRMC continued to incur a loss in the first semester, reaching P416 million.

The company said the reduced capacity rule drove revenues to decline by P543 million. Average daily ridership plunged by 63% to 121,683, as the ridership capacity was limited to 30%.

Metro Pacific Hospital Holdings

Metro Pacific hospitals’ profit increased to P719 million as revenues rose to P9.7 billion due to growth in COVID-19 admissions and testing.

Fuel storage

MPIC’s acquisition of Philippine Coastal Storage and Pipeline Corporation (PCSPC) with Keppel Infrastructure Trust, the holding company said, “is proving to be an excellent opportunity” to diversify the existing portfolio.

MPIC said it is expecting stable earnings and cash flow from PCSPC moving forward, with potential expansion in parts of Luzon, Cebu, Davao, and Northern Mindanao.

Core income reached P351 million at a 67% utilization rate for storage. – Rappler.com

Aika Rey

Aika Rey is a business reporter for Rappler. She covered the Senate of the Philippines before fully diving into numbers and companies. Got tips? Find her on Twitter at @reyaika or shoot her an email at aika.rey@rappler.com.