Economy · August 6, 2022

MPIC’s core income increases as the economy accelerates

Conglomerate Metro Pacific Investments Corp. (MPIC) on Wednesday said its main net income rose 24% to £ 7.5bn in the first half from £ 6bn last year.

The company said its constituent companies, ranging from power distribution and generation, water to toll roads, hospitals and light rail operations, provided a 15% increase in operations contribution, mostly driven a strong recovery in road traffic and growth in energy consumption as more industries have increased operational capacity.

Electricity accounted for P5.9 billion or 60% of net operating income, toll roads contributed P2.5 billion or 26%, water contributed P1.4 billion or 15%, and the other assets, mainly real estate, hospitals, fuel storage and railway light, suffered a net loss of P35 million.

Revenues increased 25% to P243.3 billion compared to P194.7 billion last year. This, however, excludes Manila Electric Co.’s pass-through revenues.

Light Rail Manila Corp., which operates 20-station LRT Line 1, reported a major net loss of P329 million due to the start of amortization of concession assets and financial charges.

Company president Manuel V. Pangilinan said the current headwinds make it difficult to predict how the second half of the year would turn out, but said MPIC’s earnings would be better in 2022 and “could approach 2019 figures. “to 15 billion pounds of income.

“While we are increasing our sales and core profitability, we remain grounded in our North Star, to contribute to national advancement and improve the lives of Filipinos,” said Pangilinan.

“We remain steadfast in our search for other potential growth areas, particularly in agriculture, tourism and logistics, but we are still aware of the crucial role MPIC plays in Philippine infrastructure and enables the progress our government envisions. I am confident that the positive tone towards infrastructure investments established by the new administration will lead to an acceleration of development for our country “.

The company said average interest rates on loans were reduced and resulted in a 12% drop in net interest costs in the first half after the company reassessed and refinanced expensive debt lines ahead. of the current context of rising interest rates.

Reported net profit attributable to the parent company reached £ 9.5 billion, down 9% from the previous year, when the company reported gains from the sale of Global Business Power and Don Muang Tollways.

“Our collective efforts across the group, supported by our board and our sustainability board, have allowed us to have a pervasive impact in our respective areas of influence. Integrating sustainability into all aspects of our business resonates with our people and results in better and more targeted service to our customers, ”said June Cheryl A. Cabal-Revilla, CFO of the company.

“This is exactly the kind of ripple effect we hope to achieve with our sustainability initiatives.”