MPIC targets ₱12-B core profit after Q1 earnings hit ₱2.5 B

Metro Pacific Investments Corporation reported a 272 percent surge in attributable consolidated net income to ₱7.0 billion in the first quarter of 2021 although core profits declined.

In a media briefing, MPIC President Jose Ma. K. Lim said the firm’s bottomline benefitted from the gain recognized from the sale of Global Business Power and Don Muang Tollways.

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

However, consolidated core net income for the first quarter of 2021 declined 26 percent to ₱2.5 billion driven largely by the 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 percent to ₱3.8 billion. Power accounted for ₱2.5 billion or 66 percent of the total, toll roads contributed ₱0.8 billion or 21 percent, and water contributed ₱0.5 billion or 14 percent.

Other businesses, mainly Hospitals, Light Rail, and Logistics, incurred an overall loss of ₱49 million.

“Although first quarter core earnings are still down year-overyear, we are expecting to benefit from the Country’s gradual economic recovery towards the latter part of the year driven by the Government’s vaccination program and the impact of the CREATE law”, said MPIC Chairman Manuel V. Pangilinan.

He added that, “This outlook serves as the foundation of our core income guidance of at least ₱12.0 billion for full year 2021.”

The first quarter earnings decline of 26 percent contrasts with the 34 percent full-year drop in 2020, illustrating a gradual improvement in performance notwithstanding the continued imposition of varying levels of quarantine across the country.

MPIC Chief Finance Officer June Cheryl Cabal-Revilla said the recently signed Corporate Recovery and Tax Incentives (CREATE) Law aided the first quarter performance with savings of ₱500 million from the lowering of income tax rates from 30 percent to 25 percent. (James A. Loyola)