Utility sales fuel MPIC profit surge

Utilities including road, power and water revenues lifted infrastructure conglomerate Metro Pacific Investments Corp.’s (MPIC) consolidated net income reached an all-time high in the first half.

It is now looking at sustaining a record profit growth this year.

At a press briefing on Wednesday, MPIC chief finance officer June Cheryl Cabal-Revilla said the company delivered a consolidated core net income of P12.5 billion in the first semester, up 27 percent from P9.9 billion. 

MPIC’s holdings booked an improved financial and operational performance, resulting in a significant 20 percent growth in its contribution to operations, reaching P14.8 billion. 

The company’s reported net income rose 23 percent to P12.5 billion from P10.2 billion last year.

Cabal-Revilla said the growth was primarily driven by Meralco’s robust energy sales, Maynilad Water’s increased billed volumes, and higher traffic on the toll roads, complemented by tariff adjustments.

Electricity sales biggest contributor

Of MPIC’s core businesses, power, through Manila Electric Co., contributed the largest share at P10.1 billion or 68 percent of net operating income (NOI).

Toll roads and water, through Metro Pacific Tollways Corp. and Maynilad Water Services Inc., contributed P3.2 billion and P2.5 billion, respectively, representing 38 percent of NOI.

“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 CEO Manuel V. Pangilinan said.

“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,” he added.

Last month, Metro Pacific Agro Ventures announced its entry into agreements to fully acquire Universal Harvester Dairy Farms, Inc. in Maramag, Bukidnon.

It operates under the Bukidnon Milk Company brand, producing fresh milk, flavored milk, yogurt and cheese products, with a presence primarily focused on key cities in Visayas and Mindanao.