Business

MPIC profit tanks as businesses feel brunt of lockdown pain

Metro Pacific Investments Corp. saw its net income plummet 62.9% to P3.03 billion in the first six months as most of its businesses suffered a financial squeeze due to the coronavirus pandemic.

Metro Pacific Investments Corp. saw its net income plummet 62.9% to P3.03 billion in the first six months as most of its businesses suffered a financial squeeze due to the coronavirus pandemic.

Operating revenues fell 17% to P30.7 billion as the hard lockdown imposed by the government in mid-March weighed heavily on the group’s tollroad, healthcare, power and rail businesses.

Core net earnings fell 38% to P5.3 billion due to the 31% decline in contribution from MPIC’s businesses and Meralco’s provisioning against the carrying value of Pacific Light Power, a gas-fired power plant in Singapore

“We have come through a difficult first half in decent financial shape… The robustness of our operations, even in the depths of this crisis, reflects a decade and more of sustained capital investment that had been delivering continued expansion in our overall customer coverage up until the COVID-19 pandemic struck and the government imposed quarantines to save lives,” said Jose Ma. K. Lim, president and CEO of MPIC.

For the group’s power business, Meralco reported a 43% drop in first semester profit to P6.8 billion. due to non-recurring charges while Globa Power recorded a 9% drop in core earnings to P1.1 billion.

The tollroads segment, through Metro Pacific Tollways Corp., saw core earnings dive 62% to P900 million due to lower traffic on all roads and higher interest costs on higher borrowings.

Maynilad posted core earnings of P3.6 billion, down 22% from the previous year due to higher amortization and depreciation expenses owing to its heavy investments in non-revenue water (“NRW”) reduction and continuing upgrades.

The hospital business likewise suffered a 93% drop in core income to P46 million due to community quarantine restrictions which resulted in sharp drop in the number of patient admissions and outpatient census and significant increases in personnel costs and medical supplies.

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