MANILA – Metro Pacific Investment Corp said Wednesday its consolidated core net income dropped 26 percent in the first quarter to P2.5 billion largely due to decreases in toll road traffic, light rail services and commercial and industrial demand for water and power.
The Q1 results are a “gradual improvement in performance” compared to its earnings that dropped 34 percent in 2020, MPIC said in a disclosure to the stock exchange.
The gradual economic recovery serves as foundation of the group's core income guidance of at least P12 billion for 2021, said MPIC Chairman Manuel Pangilinan.
The recently signed Corporate Recovery and Tax Incentives (CREATE), which lowered corporate income tax to 25 percent from 30 percent helped boost first-quarter performance, the group said.
Its power unit Meralco reported a 7 percent revenue decline and a core net income of P5.1 billion, down 11 percent, it said.
The core net income of Metro Pacific Tollways Corp also dropped 15 percent to P788 million due to reduced traffic volumes. Revenues and core net income of Maynilad also dropped in the period, it said.
For Light Rail Manila Corp, which operates LRT-1, revenues declined 57 percent to P302 million as ridership dropped 68 percent to 136,520 compared to 422,703 in the same period last year. Core net loss is at P104 million, MPIC said.
Meanwhile, Metro Pacific Hospital Holdings Inc reported an increase in consolidated net income by 6 percent to P285 million due to revenue growth and the “positive impact” of the CREATE law.
Metro Pacific said its logistics arm Metropac Movers Inc is assessing its priorities to focus on areas “it can best serve the needs and demands of the market. Pangilinan earlier announced that Metropac Movers has "taken the initiative" to store batches of China's COVID-19 vaccine Sinovac in its facility.
“Although first quarter core earnings are still down year-over-year, 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," Pangilinan said.
Meanwhile, reported income attributable to owners rose 272 percent to P7 billion in the first quarter partly due to asset sale gains.
The recent sale of the Global Business Power and Don Muang Tollways underscores the company’s commitment to optimizing its portfolio, it said.
Metro Pacific said it has contributed to the country’s fight against COVID-19 through vaccine procurement as well as in boosting isolation and testing capacities.
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-- with a report from Bruce Rodriguez, ABS-CBN News