Metro Pacific Investments Corporation (MPIC) saw a 38% drop in its core net income in the first 9 months of the year, “owing largely to the economic contraction stemming from the Philippine government’s response to COVID-19.”

Core net income fell to P7.7 billion in January to September from P12.5 billion in the same period last year.

“The resulting quarantines reduced toll road traffic, closed and then reduced rail services, and decreased commercial and industrial demand for water and power resulting in a 30% decline in contribution from operations,” the conglomerate said.

MPIC chairman Manny Pangilinan also said core net income for the entire 2020 is projected to be “substantially lower than in 2019.”

“With the continuing economic recovery, albeit slower than any of us would want, we guide core net income to be in excess of P10 billion for the full year,” Pangilinan said.

MPIC president and chief executive officer Jose Ma. Lim did note that the company saw some recovery during the 3rd quarter.

“I am pleased to report that our Q3 core net income of P2.4 billion is 26% higher than in Q2 when quarantine measures were at their most stringent, and I expect this recovery to accelerate further in the final 3 months of the year,” he said.

Here are some of the conglomerate’s financial highlights:

Manila Electric Company (Meralco)

Meralco’s 9-month core net income was down by 15% to P15.7 billion, driven mainly by a 7% decrease in volume sold and higher provisions set aside for delinquent accounts.

Residential volume was up by 15%, but commercial and industrial sales volumes fell 19% and 14%, respectively.

Metro Pacific Tollways Corporation (MPTC)

MPTC’s 9-month core net income fell sharply by 56% to P1.6 billion from P3.7 billion, as a result of lower traffic on all roads due to lockdowns.

Average daily vehicle entries on all of its domestic tollways was down by 29%.

Maynilad Water Services

Maynilad saw a 20% decline in core income to P5.2 billion for the January-September period.

Revenues slipped 4% to P17.4 billion, as increased billed volume was offset by lower average tariffs.

Light Rail Manila Corporation (LRMC)

LRMC posted a P493-million loss in the first 9 months of 2020, following the suspension of rail operations from March 17 to May 31.

Operations resumed on June 1, but ridership was initially limited to only 13% of capacity to comply with physical distancing guidelines.

Metro Pacific Hospital Holdings

MPIC’s hospital business suffered a 77% decline in its core income due to a sharp drop in the number of patient admissions and outpatient census, as well as significant increases in personnel costs and medical supplies. – Rappler.com