Connect with us

Hi, what are you looking for?

Economy

Metro Pacific core income falls 34%

Pandemic hits toll roads, rail services, water and power businesses

METRO PACIFIC Investments Corp. (MPIC) said on Wednesday that its core net income last year had declined 34% to P10.2 billion as the global health crisis slowed down economic activities and reduced business operations.

“MPIC’s consolidated core net income for 2020 declined 34% to P10.2 billion owing largely to the economic contraction brought about by the COVID-19 pandemic,” the Manuel V-Pangilinan-led holding firm said in a regulatory filing.

MPIC said contributions from its operating businesses were down 26% because of reduced toll road traffic, suspended and decreased light rail services, and lowered demand for water and power last year, among others.

“Power accounted for P10.5 billion or 69% of operating income. Water contributed P3.1 billion or 20% and toll roads contributed P2.4 billion or 16%,” MPIC President and Chief Executive Officer Jose Ma. K. Lim said in a briefing on Wednesday to present the firm’s 2020 financial performance.

Contributions from MPIC’s power business came from Manila Electric Co. (Meralco) and the Visayas-based Global Business Power Corp. Maynilad Water Services, Inc. largely made up the contribution from the water sector.

“This earnings mix reflects our growing dependence on Meralco until our tollway network expansion is completed and Maynilad is able to resume paying dividends,” Mr. Lim said.

MPIC’s other businesses, which include hospitals, light rail services and logistics, incurred an overall loss of P709 million last year.

Meanwhile, MPIC’s core net income for the fourth quarter of 2020 improved 4% to P2.5 billion due to the gradual easing of restrictions, and the resumption of economic activities.

Asked about the capital expenditures (capex) for 2021, MPIC Chief Financial Officer and Chief Sustainability Officer Chaye A. Cabal-Revilla said the firm was looking at P15 billion, which is around the same level as the budget earmarked for 2020.

In a statement, Mr. Lim said the firm had gone through the “most difficult year” as operations of its portfolio companies were significantly affected by the pandemic.

“At the parent level however, we endeavored to preserve our balance sheet and optimize capital allocation as evidenced by our recent asset monetization efforts. It is difficult to ascertain the pace of growth in economic activity so we believe it is prudent to ensure that our financial position is robust and can sustain operations and expansion even in a prolonged period of recovery,” he said.

MPIC shares at the local bourse improved 0.99% or 0.04 centavos to finish at P4.09 apiece on Wednesday.

The listed MPIC is one of three Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being PLDT, Inc. and Philex Mining Corp.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., maintains an interest in BusinessWorld through the Philippine Star Group. — Angelica Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

British Airways has begun cancelling flights to America over concerns signals from 5G mobile phone masts could endanger the lives of passengers. The UK...

Investing

The unstoppable rise of the online marketplace model – operated by the likes of Amazon, Expedia and eBay – is driving the largest fundamental...

Investing

Boris Johnson has declared the end of coronavirus restrictions today as officials step up plans for post-pandemic Britain. Working-from-home guidance and Covid passes will...

Investing

Social media stars including Jodie Marsh and five ex-Love Islanders including Francesca Allen are to be subjected to a name and shame Instagram campaign...

Investing

Private details of hundreds of debit and credit cards in the UK are being leaked on the dark web every week for as little...

Investing

Inflation has risen to its highest level in nearly three decades because of a spike in the cost of a range of goods and...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.