Metro Pacific Investments says 2012 profit up 26%

Metro Pacific Investments Corp. on Thursday said net earnings grew 26 percent last year to P6.4 billion on higher contributions from its core businesses.

 

In a disclosure to the Philippine Stock Exchange, Metro Pacific Investments said core profit rose 28 percent to P6.5 billion due to increased volumes of power sold by Manila Electric Co., higher billed water volumes by Maynilad Water Services, traffic growth and interest savings at Metro Pacific Tollways Corp. (MPTC), and the benefit from investments in the hospital group.

 

The company said lower interest and head office costs at parent level also helped improve the bottom line.

 

“All our businesses continue to be focused on service quality and operational efficiency while growing our sales and core profitability to improve the lives of all our customers, whether providing first class medical care, offering safe and efficient road transportation, delivering electricity to power homes and businesses or piping water to improve consumption and sanitation,” said Metro Pacific Investments chairman Manuel V. Pangilinan.

 

In terms of contributions to net operating income, Maynilad accounted for 46 percent or P3.6 billion while Meralco chipped in 28 percent or P2.2 billion. MPTC delivered 20 percent or P1.6 billion while the hospital group contributed P507 million or 6 percent.

 

Given the company’s strong performance, the board approved the declaration of a final dividend of P0.02 per share, a 33 percent increase over 2011. This brought the full year dividends per share to P3.20. Record date was set as March 18 the payment date on April 16.

 

Maynilad posted core earnings of P6.8 billion, up 13 percent from P6 billion in 2011 as revenues rose 15 percent to P15.9 billion on increased billed volume and an average year-on-year tariff increase of 8 percent.

 

MPTC, on the other hand, made a net income of P1.57 billion, up 6 percent as a result of traffic growth and lower interest and operating costs. Average daily entries to the firm’s road system went up 3 percent despite the imposition of a 12 percent value-added tax on toll rates starting October 2011.

 

Last December, it invested in the Manila-Cavite Toll Expressway (Cavitex)—a 14-kilometer, two- segment toll road from Cavite to Laguna with about 90,000 vehicle entries a day. 

 

The group is bullish on its investment in Cavitex, claiming it offers significant expansion prospects as a result of the NAIA-2 and CALA expressways which will connect to Cavitex as well as from the soon-to-open Ternate-Batangas and Manila.

 

The Hospital division reported core earnings of P722 million or an increase of 29 percent due to investments made in Asian Hospital in December 2011 and higher shareholdings in Cardinal Santos Medical Center in November 2011. — VS, GMA News