Metro Pacific earnings slip 34% to P10.2B in 2020 amid pandemic

Infrastructure conglomerate Metro Pacific Investments Corporation (MPIC) posted a 34% decline in its net earnings in 2020, reflecting the pandemic-induced economic fallout last year.

In a disclosure to the Philippine Stock Exchange on Wednesday, MPIC said its consolidated core net income last year stood at P10.2 billion, down 34% year-on-year.

The company attributed the decline “largely to the economic contraction brought about by the COVID-19 pandemic.”

MPIC said the COVID-19 crisis brought about in its business operations reduced toll road traffic, suspended and reduced light rail services, and decreased commercial and industrial demand for water and power.

“As a result of all these, contributions from operations also dropped 26%,” it said.

The company said its power business led by Meralco saw a 14% decline in revenues reflecting lower pass-through generation charges from reduced WESM prices because of improved supply conditions and cheaper fuel prices. Meralco’s net income in 2020 decline by 30% to P16.3 billion

Its Global Business Power Corporation also saw a decline in revenues by 13% to P21.1 billion and 13% drop in core net income to P2.4 billion.

MPIC’s water business led by Maynilad saw decline in both topline and bottomline.

Maynilad revenues slipped 4% to P22.9 billion, while net income fell 15% to P16.5 billion.

Metro Pacific Tollways Corporation, meanwhile, saw a 27% decline in revenues to P13.6 billion and 49% drop in core net income to P2.7 billion.

Light Rail Manila Corporation, the operator of LRT1, posted a 62% decline in revenues to P1.3 billion due to suspended and then reduced services as mandated by quarantine protocols. LRMC saw core net loss of P689 million.

Metro Pacific Hospital Holdings Inc., which operates the largest private hospital network in the Philippines with 18 hospitals and 6 cancer centers nationwide, recorded a 7% decline in revenues to P14.8 billion.

“In these unprecedented times we are reminded of the critical role that infrastructure plays in the lives of millions. By powering commerce and households, delivering clean and affordable water, connecting people and places, and making excellent healthcare available to everyone, we are doing our humble part in contributing to national progress and improving the quality of life of Filipinos,” said MPIC president and CEO Jose Ma. Lim said.

“While earnings—for the first time in our history—have been less than ideal, we purposely directed our focus on service continuity amidst the pandemic. Together with our partners in Government, we worked tirelessly to ensure that every Filipino has access to the essential services we offer especially at the height of this crisis,” Lim said.

For his part, MPIC chairman Manuel Pangilinan said, “We look forward to the gradual recovery of our operations in 2021 spurred by increased economic activity in the country. We will continue to do our part as partners of the government in enabling growth in Philippine infrastructure.” — BM, GMA News