Vol. XXI, No. 166 [ Business World Online ]
Wednesday, March 26, 2008 | MANILA, PHILIPPINES
PUBLICLY LISTED Metro Pacific Investments Corp. (MPIC), the Philippine subsidiary of Hong Kong’s First Pacific Co., Ltd., is looking at entering other businesses such as hotels and infrastructure, after swinging back to profit last year.
Metro Pacific said core net income for 2007 reached P194.9 million, from a loss of P25.4 million a year earlier, with its water utility and property arm making hefty contributions.
The company chairman, Manuel V. Pangilinan, described Metro Pacific’s return to profitability as a significant milestone for the company.
"Several years ago, we began a determined effort to rebuild the company, with a view to becoming again a major corporation in our country. The return to financial health of [Metro Pacific] is a consequence of that intense focus and effort: this now allows [Metro Pacific] to pursue growth opportunities in a very active way," he said.
Mr. Pangilinan said the company is optimistic profits will be higher this year with forays into new businesses. "Now that MPIC is once again profitable, the focus of the company can be redirected towards identifying and pursuing opportunities in the areas of natural resources, infrastructure, health care and hotel business," he said.
Water concessionaire Maynilad Water Services, Inc., which Metro Pacific and the Consunjis’ DMCI Holdings, Inc. bought last year, earned P1.25 billion, or a 25% increase, on the back of improving volume of billed water and billed customers.
During the period, the volume of billed water rose by 9% to 286 million cubic meters from 262 million cubic meters in 2006. Billed customers went up to 703,519 from 677,985.
"The recent exit of Maynilad from its court-administered rehabilitation will allow it to make significant investments in its system improvement initiatives in the short to medium term, foremost among which is the reduction of non-water revenue," said Metro Pacific President Jose Ma. K. Lim.
Meanwhile, Landco Pacific, Metro Pacific’s property unit, reported a net income of P261.2 million from a loss of P12.9 million, as revenues nearly tripled.
Metro Pacific said the success of Landco Pacific’s residential projects — the Ponderosa Leisure Farms, Amara en Terrazas, Playa Calatagan, Leisure Farms, Terrazas de Punta Fuego, and Montelago — brought revenues up to P2.08 billion from P712.4 million previously.
But operating expenses likewise rose to P884.2 million from the previous year’s P695.8 million with the launch and marketing of new projects in 2007.
Metro Pacific also has a 33.45% stake in Medical Doctors, Inc., owner of the Makati Medical Center.
Medical Doctors earned P268.5 million in profits, up by 20.3% from P223.1 million in 2006, with higher revenues from hospital and educational services.
The Makati Medical Center is implementing a major redevelopment program including a new building, financed by internal cash and the issuance of subordinated convertible notes in May. Metro Pacific subscribed to the offer.
The redevelopment involves the construction of a new building that will house its treatment and diagnostic centers and open up more space for additional patients’ rooms and doctors’ offices. — Lovely Nica P. Lee
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