The tollway unit of San Miguel Corp. said net profit rose 6 percent in the third quarter of the year mainly because of higher vehicle traffic volume.
South Luzon Tollways Corp. reported a net income of P763.4 million in July to September this year from P720.4 million year-on-year.
SLTC’s profit in the first nine months rose 4 percent to P2.27 billion from P2.18 billion last year.
The company’s toll revenue posted a 4-percent increase in the third quarter to P1.48 billion from P1.43 billion last year, driven by higher traffic volume. The figure brought the company’s total revenue in the first nine months to P4.5 billion from P4.3 billion last year.
“The continuous expansion of housing community and consumer socio-economic activities in the South contributed to the increase in traffic volume,” SLTC said.
“Apart from the industrial development in the area which gave rise to numerous industrial parks, Cavite and Laguna have become attractive to employees working in Metro Manila but preferred to raise their families in the south,” it added.
SLTC said these development enhanced the volume for class 1 vehicles, while traffic volume for class 3 vehicles also increased mainly due to the thriving Calabarzon, the second most densely populated region after the National Capital Region.
The company also said it remained compliant with the terms of its concession agreement by providing sufficient funding for maintenance obligations under its contract with the government.
“Since the company has been in the operations for nine years, a higher maintenance budget is provided to restore and maintain the toll road and related equipment, part from enhancement activities to bring about improved throughput,” SLTC said.
The company spent P116.8 million for the pavement repair and asphalt resurfacing activities during the period.
Earlier, SLTC said it would spend P14.85 billion to extend South Luzon Expressway by more than 56 kilometers from Sto. Tomas, Batangas to Tayabas, Quezon.