Metro Pacific Investments Corporation (MPIC) saw its core profits decline by 26% to P2.5 billion, as the COVID-19 pandemic continued to weigh on its businesses.

While core profits dipped, MPIC said this is better than the 34% full-year drop in 2020, “illustrating a gradual improvement in performance notwithstanding the continued imposition of varying levels of quarantine across the country.”

The holding company also said the slight improvement in the 1st quarter figure can be attributed to the passage of the Corporate Recovery and Tax Incentives for Enterprises or CREATE law, which eased its future tax liabilities.

MPIC also noted that consolidated reported net income rose 272% to P7 billion, due to the gain from the sale of two of its businesses, Global Business Power and Don Muang Tollway.

“Although 1st quarter core earnings are still down year-over-year, we are expecting to benefit from the country’s gradual economic recovery towards the latter part of the year driven by the government’s vaccination program and the impact of the CREATE law. This outlook serves as the foundation of our core income guidance of at least P12 billion for full-year 2021,” said MPIC chairman Manny Pangilinan.

Here is a snapshot of how MPIC’s businesses performed during the 1st quarter:

Meralco

Manila Electric Company (Meralco) reported an 11% dip in core income to P5.1 billion, due to lower energy sales, lower interest income on cash investments, and higher operating expenses.

Total revenues went down by 7% while energy sales decreased by 4%.

Toll roads

Metro Pacific Tollways Corporation posted a 15% drop in core net income to P788 million, due to the decrease in traffic volumes, and higher interest expense and amortization from expanded expenses in roads construction.

Revenues dipped 1% to P4.2 billion, as traffic in the Philippines lessened. This was somewhat offset by its international toll roads business, particularly in Vietnam, where vehicle entries increased 10%.

Maynilad

Maynilad Water Services reported a 24% dip in core net income to P1.2 billion, while revenues declined 6% to P5.3 billion.

Capital expenditures amounted to P1.6 billion, largely used to fund new water treatment plants.

LRMC

Light Rail Manila Corporation (LRMC), the operator of the Light Rail Transit Line 1, saw revenues dropping by 57% to P302 million due to physical distancing restrictions in trains.

Average daily ridership dipped 68% to 136,520 compared to the 422,703 a year earlier.

Due to these, LRMC posted a net loss of P104 million.

Hospitals

Metro Pacific Hospital Holdings Incorporated reported a 14% increase in revenues to P4.5 billion, driven largely by growth in COVID-19 admissions and testing.

Inpatient admissions dropped 42% to 24,508, while outpatient visits fell 14% to 751,895.

Consolidated net income jumped 6% to P285 million, driven by growth in revenues and tax cuts due to the CREATE law. – Rappler.com