Infrastructure conglomerate Metro Pacific Investments Corp. said Wednesday it expects to end 2022 with a core net income of P14 billion, up 13.8 percent from 2021 level after posting strong nine-month earnings.
MPIC chairman and chief executive Manuel Pangilinan said in a press briefing the group was on track to hitting a double-digit growth for the rest of the year as core businesses remained strong despite the high interest and inflation rate environment.
Nine-month net income rose 25 percent to P11.8 billion from P9.5 billion in the same period last year as consolidated revenues climbed 25 percent to P383.1 billion from P297.9 billion.
The company attributed the strong nine-month growth to the recovery in toll road traffic, growth in power consumption and increase in billed water volumes.
Power accounted for P8.9 billion or 58 percent of net operating income, followed by toll roads which contributed P4.1 billion and water which delivered P2.2 billion. Other businesses, mainly real estate, hospitals, fuel storage and light railway contributed P153 million.
The conglomerate said third-quarter core net income reached P4 billion.
The group said it managed to reduce average interest rates on borrowings, which resulted in a 7-percent decline in net interest costs in the first nine months.
“This was a result of the company’s strategic rerating and refinancing of expensive debt facilities amidst rising interest rate environment,” MPIC said.
MPIC chief finance officer Chaye Cabal-Revilla said 100 percent of the group’s debt was fixed-rate. The company has $130 million in dollar-denominated debt, she said.
Pangilinan said the high interest rate environment could be a “damper on economic activity”.
“Looking ahead, we will be focusing on unlocking further opportunities in agriculture in the hopes of helping to address our country’s food security aspirations. We continue to be guided by our vision of achieving the ideal balance between maximizing economic opportunities and enabling solutions to urgent societal challenges,” Pangilinan said. Jenniffer B. Austria