Buoyed by double-digit growth in the first three quarters, infrastructure conglomerate Metro Pacific Investments Corp. (MPIC) is confident in breaching its profit target for the full year 2024. 

During a press conference on Thursday, MPIC chief finance officer June Cheryl Cabal-Revilla reported a 28 percent increase in consolidated core net income, reaching a record high of P20.8 billion in the first nine months from P16.2 billion a year ago.

The growth was primarily attributed to the company’s improved core businesses, including energy, water and toll roads. 

“Normally, the fourth quarter is the lowest for MPIC and the biggest contributor is power but energy sales are lower during the period. When you ask about the target, it is P22.4 billion but we are already at P20.3 billion and we are near that,” Cabal-Revilla told reporters.

Strategic business refinancing

This, combined with a strategic business refinancing, positions the company effectively to meet its targets.

MPIC’s contribution from operations grew by 21 percent to P24.3 billion, primarily supported by a surge in energy sales at Meralco, higher billed volumes at Maynilad Water, and increased traffic on its toll roads, along with higher toll tariffs.

Among MPIC’s core businesses, the Power segment delivered the largest share of net operating income (NOI), contributing P15.3 billion, or 63 percent of the total. 

Toll Roads and Water followed with contributions of P5.1 billion and P4.5 billion, respectively, accounting for 39 percent of the total NOI. 

Significant net income increase

Reported net income also saw a significant increase, rising 44 percent to P23.1 billion, up from P16.1 billion last year driven by additional non-recurring gains from MPIC’s real estate business.

In terms of individual business performance, Meralco, the power segment, delivered a six percent increase in total revenues, which reached P355.4 billion. The growth was fueled by a seven percent increase in energy sales, which amounted to 40,872 gigawatt-hours. 

Meralco’s core net income grew by 17 percent, reaching P35.1 billion, reflecting stronger contributions from its power generation, retail electricity supply, and non-power businesses. 

The company’s reported net income also increased by 19 percent, rising to P33.8 billion.

In the Toll Roads sector, Metro Pacific Tollways Corp. saw toll revenues increase by 16 percent, reaching P23 billion. This growth was a combination of higher toll rates implemented across all its markets and increased traffic in the Philippines.

The Water business, represented by Maynilad, also posted strong results, with revenues rising by 23 percent to P24.9 billion.

The growth was supported by a three percent increase in billed volumes and a 20 percent tariff adjustment implemented in early January. 

Maynilad’s core net income surged 37 percent to P9.3 billion, further supported by reduced operating expenses.