Metro Pacific Investments Corp., the flagship unit of Hong Kong-based conglomerate First Pacific Co. Ltd. in the Philippines, said Tuesday core net income in 2015 rose 22 percent to a record P10.3 billion on strong volume growth across all subsidiaries.
Metro Pacific president Jose Ma. Lim said in a press briefing reported net income also climbed 20 percent to P9.6 billion as consolidated revenues rose 10 percent to P37.2 billion.
The conglomerate reported strong financial growth despite the delay in the tariff rate adjustments on its water, rail and tollroad businesses.
“Our strong earnings growth reflect our intense focus on operational efficiencies but at the cost of years of elevated capital expenditures. Our earnings—and our ability to finance infrastructure build which this country so badly needs—would be still stronger, if we were simply allowed to play on a level regulatory playing field,” Lim said.
Unit Maynilad Water Services Inc., which serves the western zone of Mstro Manila, contributed P4.8 billion to Metro Pacific’s income or 38 percent of the total, while Manila Electric Co. accounted for P4.5 billion or 36 percent of the aggregate contribution.
The group’s tollroads businesses delivered P2.8 billion while the hospital group accounted for P473 million
“All our businesses are fully focused on service quality and operational efficiency, while at the same time growing our sales and core profitability to improve the lives of all our customers—providing first-class medical care, offering safe and efficient road and rail transportation, delivering electricity to power homes and businesses, and piping clean, safe water to improve consumption and sanitation,” said Metro Pacific chairman Manuel Pangilinan.
Pangilinan expects Metro Pacific to sustain its growth momentum in 2016 as the company is prepared to spend P70 billion in capital expenditures to support the expansion projects of core subsidiaries.
Including other Philippine companies under the First Pacific Group, like Philippine Long Distance Telephone Co., Philex Mining Co. and Roxas Holdings Inc., total capital spending is set at P120 billion.
“While it may be rather early to provide earnings guidance for 2016—given continuing regulatory uncertainties and the impending change in government starting July—we have maintained a positive outlook for the year. Despite the accumulated regulatory risks associated with delayed tariff progression and other issues in water, roads and now light rail, we remain committed in our support of the PPP program under this Government and beyond it,” Pangilinan said.