Infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) said on Thursday that its first-quarter core net income ended little changed compared to the same period last year, driven by expansion across its businesses.
In a press briefing, MPIC President and Chief Executive Officer Jose Ma. Lim said its consolidated core net income reached PHP3.660 billion in January to March from PHP3.646 billion last year.
Lim pointed out that all businesses “performed quite well” during the quarter, but the toll roads unit incurred flat core net income due to the interest burden for funding new road projects.
He said earnings were sustained by an 8-percent increase in operating contribution driven by substantial core net income growth from Manila Electric Company (Meralco), the continuing volume growth coupled with inflation-linked and basic tariff increases at Maynilad Water Service Inc., and strong patient census at hospitals.
“All of which combined to offset higher interest costs,” he added.
Power accounted for PHP2.7 billion or 54 percent of net operating income; toll roads shared PHP1.1 billion or 23 percent; water, PHP900 million or 18 percent; the hospitals group, PHP242 million or 5 percent; and the rail, logistics and systems group shared PHP7 million.
“Our 8-percent growth in contribution from operations reflects meaningful volume increases for most of our businesses following years of high investment and our continuing emphasis on operational efficiencies,” he added.
Its construction is ongoing for the North Luzon Expressway (NLEX), Radial Road 10, Cavite Expressway (CAVITEX) C5 South Link, Cebu Cordova Link Expressway, and the Laguna section of the Cavite-Laguna Expressway.
“The rise in our borrowing costs has largely offset the increased operating contribution as we continue to make significant investments in our new road, water, energy and logistics projects. These will take some time to complete and begin contributing to earnings,” Lim added. (Leslie Gatpolintan)
News source: Philippine News Agency