Metro Pacific nets P7B in Q1, up 272%

Pangilinan-led Metro Pacific Investments Corp. (MPIC) on Wednesday reported a consolidated net income attributable to owners of the company of P7.032 billon in the first quarter of 2021, up 272% from P1.89 billion in the same period last year.

In a regulatory filing, MPIC said it benefitted from the gain recognized from the sale of Global Business Power (GBP) and Don Muang Tollways.

“These recent asset sales underscores MPIC’s commitment to optimizing its portfolio and realizing value for its stakeholders,” it said.

On March 31, upon completion of the necessary closing conditions, MPIC said it transferred its ownership stake in GBP to Meralco PowerGen Corp. following a share sale and purchase agreement signed in late 2020.

“This simplifies MPIC’s power portfolio with all power generation assets now held under one owner,” it said.

MPIC said it recognized a net gain of P4.6 billion from the transaction and retained an economic interest in GBP through its investment in Meralco.

Proceeds from this sale will be used to help fund MPIC’s expansion projects across the group.

Meanwhile, in February, Metro Pacific Tollways sold its entire 29.45% indirect stake in Don Muang Public Company Ltd. in Thailand for P7.2 billion.

Proceeds from this sale will be used to fund toll road expansion projects.

MPIC’s consolidated core net income for the first quarter of 2021, however, declined 26% to P2.5 billion driven largely by economic contraction amid the COVID-19 pandemic which resulted in reduced toll road traffic; light rail services; and commercial and industrial demand for water and power.

As a result of these factors, contribution from operations dropped 19% to P3.8 billion, as follows:

• Power accounted for P2.5 billion or 66% of the total
• Toll roads contributed P800 million or 21%
• Water contributed ?500 million or 14%
• Other businesses, mainly Hospitals, Light Rail, and Logistics, incurred an overall loss of P49 million

“The recently signed Corporate Recovery and Tax Incentives (CREATE) Law aided the first quarter performance with its lowering of income tax rates from 30% to 25%,” MPIC said.

“This law eases the company’s future tax liabilities and consequently allows reallocation of resources to further improve operational efficiencies,” it added.  —Ted Cordero/LBG, GMA News