MPIC 9-mo. net profits rise 2.5% to P12.9B

Full-year core income is expected to be “moderately ahead” of 2018 results.

Conglomerate Metro Pacific Investments Corp. (MPIC) booked 2.5 percent higher core net income in the first nine months of the year, to P12.9 billion from P12.2 billion in the same period last year, lifted by financial and operational improvements across its constituent firms.

Consolidated reported net income attributable to owners of the parent company declined five percent to P11.8 billion owing to P695 million worth of nonrecurring expenses compared to a P297-million gain last year, which MPIC also attributed to foreign exchange translation losses versus gains in 2018.

Meanwhile, operating contributions rose six percent.

Manila Electric Co., which accounted for 55 percent of net operating income in the period, contributed P9 billion; toll roads added P3.7 billion or 22 percent on the back of traffic growth in domestic toll roads; water contributed P.2 billion or 19 percent due to higher volumes and tariffs at Maynilad Water Services, Inc.

Lastly, the Hospitals group contributed P681 million or four percent due to strong in/out patient numbers, offsetting higher interest costs.

MPIC chairman Manuel Pangilinan said full-year core income is expected to be “moderately ahead” of 2018 results, as the company also expects reduced higher interest costs owing to the P35.3 billion fund-raising for the hospital group via a consortium composed of Singaporean wealth fund GIC and global investment firm KKR.

“The improvement in our operating results has been reduced by higher interest costs. Moving forward this will be ameliorated by the benefit of our recently announced transaction for the hospitals business. The process of raising funding for MPIC is continuing with further portfolio rationalization to be announced in the coming months,” Pangilinan said.