Metro Pacific net income declines in 2020 as pandemic shrinks economy

ABS-CBN News

Posted at Mar 03 2021 01:58 PM

MANILA - Metro Pacific Investment Corp said Wednesday its consolidated core net income dropped 34 percent in 2020, amid the economic contraction brought on by the COVID-19 pandemic. 

Consolidated core net income fell 34 percent to P10.2 billion due to reduced toll road traffic, suspended and reduced light rail services, and the decreased commercial and industrial demand for water and power, MPIC said in a disclosure to the stock exchange.

Total revenues of its power unit Meralco declined 14 percent, reflecting lower generation charges, Metro Pacific said. Total energy sales also declined by 7 percent. Core Net Income dropped 9 percent to ₱21.7 billion, MPIC said.

Residential volumes rose 13 percent accounting for 38 percent of total sales volume in 2020 while commercial and industrial volumes declined, MPIC said, as millions were forced to work and study at home since COVID-19 restrictions were imposed.

Meralco meanwhile spent P20.8 billion in capex last year. 

Maynilad Water Services Inc's revenue dropped 4 percent to P22.9 billion while its core net income fell 15 percent to P6.5 billion, MPIC said.

Revenues of Metro Pacific Tollways Corp declined 27 percent to P13.6 billion due to reduced traffic. The toll unit's core net income dropped 49 percent to P2.7 billion, it said.

Expansion projects have contributed "significant progress" with the full commercial operation for the first sub-section of the Cavite Laguna Expressway and the opening of the NLEX Harbour Link C3-R10 road, the company said.

Revenues of Light Rail Manila Corp and Metro Pacific Hospital Holdings Inc also declined by 62 percent and 7 percent respectively. 

LMRC reported a core net loss of P689 million, MPIC said.

"We recognize the impact of the pandemic to our 2020 results. However, it should strongly be noted that we remained steady in investing for the future while continuing to deliver decent returns to our shareholders, employees, business partners, and the communities we engage and serve," MPIC chairman Manuel Pangilinan said.

"We learn what we can learn from our recent experiences, but we forge ahead. We look forward to the gradual recovery of our operations in 2021 spurred by increased economic activity in the country. We will continue to do our part as partners of the government in enabling growth in Philippine infrastructure,” Pangilinan added.

All forms of public transport were temporarily shut in March when the lockdown was imposed. Various types of transportation are now operating at limited capacities.

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