Metro Pacific Investments Corp., an infrastructure investment holding firm now in the midst of a possible delisting, said Wednesday first-quarter net income dropped 12 percent to P5.0 billion from the year-earlier period of P5.7 billion, which included gains from the acquisition of Landco.
Core net income, however, was up 38 percent to P4.3 billion.
Metro Pacific said first-quarter results was mainly driven by the strong performance of the power generation business and higher billed volumes from the water concession.
The power business, primarily Manila Electric Co., contributed P4.2 billion to net operating income. Toll roads added P1.3 billion, water concession contributed P1.1 billion while other businesses, mainly light rail, healthcare, agribusiness, real estate, and fuel storage, incurred a net loss of P967 million.
Net interest costs was down 3 percent due to the strategic rerating and refinancing of expensive debt facilities over the past two years.
“Our strong performance for the first quarter reflects significant volume increases for our power, toll roads, water and healthcare businesses, bolstered by favorable tariff adjustments and savings resulting from operational efficiencies. We are also realizing the fruits of strategic investments in the power generation business, and we expect this to continue to be a driver of growth in the future,” said Manuel Pangilinan, chairman, president and chief executive officer of Metro Pacific.
Just last week, several major investors led by First Pacific of Hong Kong made a tender offer for shares of Metro Pacific at a price of P4.63, a 22 percent premium over the one-year volume weighted average price of the stock.
Pangilinan said the decision of Metro Pacific to voluntarily delist underscores the company’s view the current market price doesn’t reflect the intrinsic value of the shares. “The tender offer and successful delisting will allow MPIC’s minority shareholders to realize a significant premium over the historical share prices of MPIC. At the same time, a delisted MPIC will be better aligned with the objectives of the Bidders to continue investing in long-term infrastructure projects supporting sustainable economic growth in the Philippines,” he said.
Pangilinan said delisting Metro Pacific could also unlock the value of various companies under its portfolio that aren’t listed yet.
