PANGILINAN-LED Metro Pacific Investments Corp. (MPIC) recorded a 23% increase in its first-half net income to P12.5 billion from P10.2 billion last year on higher contributions from its utilities and toll roads subsidiaries.
First-half operating revenue rose by 22% to P35.76 billion from P29.37 billion last year, MPIC Chief Financial, Risk, and Sustainability Officer Chaye A. Cabal-Revilla said in a media briefing on Monday.
MPIC’s first-half consolidated core net income rose to a new record high of P12.5 billion compared with P9.9 billion a year ago.
Among businesses, the power segment took up P10.1 billion of total net operating income, followed by the toll roads segment at P3.2 billion, and the water segment at P2.5 billion.
Better financial and operating results from MPIC’s holdings generated a 20% increase in contribution from operations to P14.8 billion, driven by strong growth in energy sales at Manila Electric Co. (Meralco), billed volumes at Maynilad Water Services, Inc., and traffic on the toll roads complemented by higher tariffs.
“Our power, toll roads, and water business continued to deliver double-digit growth in earnings on the back of strong volumes and the impact of long-overdue tariff adjustments,” MPIC Chairman, President, and Chief Executive Officer Manuel V. Pangilinan said in the briefing.
On the power segment, Meralco grew its first-half net income by 26% to P22.4 billion. Revenue increased by 6% to P237.5 billion as energy sales rose by 9% to 26,954 gigawatt hours.
For the toll roads business, Metro Pacific Tollways Corp. (MPTC) saw a 25% increase in core net income to P3.4 billion. Toll revenue rose by 18% to P15.4 billion, led by a combination of toll rate increases and traffic growth in all markets.
During the first half, average daily vehicle entries in the Philippines rose by 7% to 693,175, while Vietnam also saw a 1% increase to 78,390.
Average daily vehicle entries of MPTC’s operations in Indonesia declined by 1% to 1,203,631.
On the water business, Maynilad recorded a 29% increase in first-half core net income to P5.6 billion. Revenue increased by 23% to P16.4 billion, reflecting 4% growth in billed volumes and a 19.8% adjustment in tariff in early January.
Meanwhile, Ms. Revilla said the entire Pangilinan group has a capital expenditure budget of about P221 billion, of which P122 billion is earmarked for MPIC.
“The budget for MPIC is about P122 billion (this year). That does not include the planned acquisition for Metro Pacific Health, that’s about P45.5 billion. If you want us to include PLDT Inc., Philex Mining Corp., that’s P221 billion budget for 2024,” she said.
In July, MPIC’s Metro Pacific Agro Ventures announced its entry into agreements to acquire Universal Harvester Dairy Farms, Inc., which operates under the Bukidnon Milk Co. brand. The company produces fresh milk, flavored milk, yogurt, and cheese products, with presence primarily focused on key cities in Visayas and Mindanao.
Meanwhile, Mr. Pangilinan is expecting to sustain MPIC’s performance for the second half.
“With MPIC continuing to maintain a low cost of capital in a rising interest rate environment, the company is poised to maintain its strong growth trajectory for the rest of the year,” Mr. Pangilinan said.
“The job for the second half is to exert our efforts to substantially achieve the same kind of earnings we’ve seen in the first half,” he added.
MPIC is one of the three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority share in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave
