Infrastructure conglomerate Metro Pacific Investments Corp. said Thursday consolidated net income climbed 27 percent in the first quarter to P3.8 billion from P3 billion in the same period last year, on strong volume growth across units and higher ownership in power business.
Metro Pacific said that in terms of contribution in net operating income, power distribution and generation business accounted for P2.4 billion or 54 percent of the total, followed by tollroads with P1.1 billion or 24 percent and water with P800 million.
The group’s hospital group contributed P190 million, while the rail, logistics and systems group accounted for the remaining P35 million.
Metro Pacific president and chief executive Jose Ma. Lim said while the company managed to post strong first-quarter earnings, the domestic toll road and water businesses were under-recovering because of the delayed tariff adjustments.
“Robust growth in volumes in recent years does not in any sense change the need to bring these businesses into line with their agreed contract provisions,” Lim said.
Metro Pacific has yet to collect P10 billion in revenues from delayed tariff adjustment on tollroad business and another P12 billion for delayed tariff adjustment on water business.
The issue on delayed tariff adjustment on water is now back with the Singapore High Court after the Philippine government filed an appeal.
Metro Pacific proposed that the government allow the company to recover revenue backlog by applying it to the tariff over the remaining concession life together with a gradual increase in the next two to three years to bring the tariff to contracted levels.
Metro Pacific chairman Manuel Pangilinan said he was expecting continued strong volume growth in 2018 across the group’s businesses as the domestic economy would likely sustain growth.
“Volumes will remain strong. We need to work hard with government to accelerate rights of way delivery so we can get construction started and funds deployed on our current tollways projects. It is too early to give earnings guidance beyond a reasonable expectation that 2018 earnings will exceed last year’s,” Pangilinan said.
The group also plans to invest in logistics, tollroad and water projects in Southeast Asia.