Metro Pacific Investments Corp. (MPIC) said profit last year reached P23.85 billion, up 68.78 percent from P14.13 billion the prior year.
Core net income was at P15.6 billion, up 4 percent from P15.1 billion the year before.
MPIC said improved financial and operating results of the constituent companies delivered a 7- percent increase in contribution from operations.
Key factors included: substantial core net income growth from Manila Electric Co. (Meralco); continued traffic growth on our domestic toll roads; and strong patient numbers at our hospitals.
“Our record of consistent growth in earnings and book value per share – the latter at P6.05 at 31st December 2019 – is not translating to share price performance. While we might attribute some of this to market factors and some to conglomerate discount, the discount (so we are advised) reflects concern on political developments”, said Manuel V. Pangilinan, MPIC chairman.
“In these circumstances, questions have been raised regarding investment in Philippine- regulated infrastructure and the sources of capital to support this. There are no quick or easy answers to these questions but the current model of a listed infrastructure business with a wide pool of dedicated Philippine and foreign shareholders putting their faith in these long-term contracts needs serious review. We are committed to completing our current projects while directing discretionary investment to warehousing, real estate and tourism.
We will endeavor to at least match our 2019 core income in the year ahead, despite the challenges,” Pangilinan added.
Power accounted for P11.6 billion or 55 percent of MPIC’s net operating income; tollroads contributed P5.2 billion or 25 percent; water contributed P3.6 billion or 17 percent; and hospitals provided P867 million or 4 percent of the total.
The rail, logistics and other businesses combined for a net loss of P352 million as higher interest costs on borrowings made to finance capital expenditures for growth held down core income growth relative to contribution, MPIC said.
The company said the huge growth in bottomline was driven by the sale of a stake in its hospital business, “partly offset by restructuring costs for our logistics business and a reduction in the carrying values of some of our water investments.”
In October last year, MPIC signed an agreement with private equity fund KKR, and Singapore’s sovereign wealth fund GIC for a P5.2 billion acquisition of a 6.25 percent stake in Metro Pacific Hospital Holdings Inc.
On a per unit operation basis, the power business posted core profit of P11.6 billion, up 7 percent driven largely by Meralco.
The tollroad business under Metro Pacific Tollways Corp., (MPTC) saw core profit hit P5.3 billion, up 18 percent, due to higher traffic on domestic roads and tariff adjustments in NLEX, SCTEX and CAVITEX, offset by lower traffic on regional roads and higher borrowing costs.
The water business Maynilad Water Service Co. Inc. posted core profit of P7.7 billion, flat relative to the prior year, in the backdrop of a P24 billion revenues, up 9 percent from the prior year.
MPIC said the increase in Maynilad topline is a result of “the combined effect of increases in tariff (basic and inflation-linked) and the number of water connections.”
The hospital business under Metro Pacific Hospital Holdings Inc., meanwhile posted core profit of P2.7 billion, up 14 percent.
Revenues reached grew 12 percent though the company failed to provide the absolute amount.
