Metro Pacific raises income target to P11.7B in 2016

MANILA, Philippines – Conglomerate Metro Pacific Investments Corporation (MPIC) raised its 2016 core net income target to P11.7 billion from the initial estimate of P11.5 billion, after it posted strong growth during the first 9 months of the year.

Metro Pacific said in a disclosure to the local bourse that core net income from January to September this year reached P9.3 billion, an increase by 13% from P8.2 billion in the same period last year on the back of strong growth in all its operations.

"The strong results during the first 9 months of the year reflect our ongoing expansion of investment, continuing improvements in service levels and efficiency as well as financial gains for our operating companies," MPIC chairman Manuel V. Pangilinan said in the disclosure.

"I am hopeful we will soon see some progress on resolution of our past regulatory issues which would further increase funds for investments and contribute to an acceptable return on our shareholders' funds," Pangilinan added.

In terms of contribution to the company's net operating income, the power group accounted for P5.7 billion or 49% of the aggregate contribution while its water group contributed P2.7 billion or 23% of the total.

Toll roads also contributed P2.6 billion, while the hospital and the rail groups contributed P443 million and P135 million, respectively.

MPIC said its 9-month consolidated net income stood at P9.5 billion, up 22% from a year ago level.

Long-overdue tariff adjustments

"I expect continued volume growth for the rest of the year from all our businesses. We have seen encouraging post-acquisition performance at Global Power which offers us immediate attractive cash returns and solid medium-term prospects," Metro Pacific president Jose Ma. Lim said.

Lim said talks with the Duterte administration on resolving some of MPIC's overdue tariff increases are ongoing. (READ: Pangilinan-led MPIC to Duterte admin: Let's start with a clean slate)

Metro Pacific said it is asking the government to finally implement the delayed tariff adjustments on its water, roads, and light rail businesses.

As of end-September, Metro Pacific estimated revenue loss from the delay in tariff rate adjustments at P3.8 billion.

Meanwhile, Metro Pacific Tollways Corporation president Rodrigo Franco said the the company last September filed a petition for adjustment of toll rates for 3 toll road projects starting January 2017.

If implemented, the tariff rate on the North Luzon Expressway will go up by 21%, Subic-Clark-Tarlac Expressway by 48%, and Manila-Cavite Expressway by 41%.

But the company is open to reconsidering lower adjustments in tariff rates only if the government will also be willing to compensate the company via direct reimbursement, lengthening of the concession period, and additional adjustments. – Rappler.com