Business

NLEX 9-month profit plunges amid Covid-19 pandemic

NLEX Corp. saw a 44% decline in its net income in the nine months to September to P2.6 billion as motorists stayed home due to widespread Covid-19 restrictions.

The operator of North Luzon Expressway and Subic-Clark Tarlac Expressway attributed the drop to lower traffic volume as a result of the Luzon-wide enhanced community quarantine in March.

Revenues fell 30% to P7.8 billion as average daily traffic in NLEX decreased by 29.3% to 188,830 daily vehicle entries while average daily traffic in SCTEX was down by 38.4% to 42,350 vehicle entries.

The company also generated other income from advertising placements, fees from toll service facilities located along the NLEX and rental revenues generated by the company-owned NLEX Drive & Dine through wholly owned subsidiary NLEX Ventures Corp.

The 102-kilometer NLEX serviced an average of 270,718 vehicles per day in 2019. The NLEX is the main infrastructure backbone that connects Metro Manila to Central and Northern Luzon.

SCTEX, on the other hand, is a 91-km expressway stretching from Subic-Tipo until La Paz, Tarlac.

It connects the special economic zones in Subic and Clark, Olongapo City and Tarlac City.

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