Saturday, August 16, 2008 [ manilatimes.net ]
THE Philippine unit of Hong Kong’s First Pacific Co., Ltd. said its first-half profit fell owing to a significant drop in revenues.
In a statement, Metro Pacific Investments Corp. (MPIC) said its net income fell by 16 percent to P401.34 million compared with P477.41 million in the same six-month period last year.
The company’s core net income reached P24.5 million from the restated core net loss of P43.9 million in the same period last year.
Revenues in the first six months dropped 61 percent to P786.13 million from P1.01 billion last year due to lower sales from Landco Pacific Corp.
The real estate unit of MPIC posted a 29-percent decline in revenues to P860.7 million from last year’s P992.3 million.
“The first half numbers clearly indicate that MPIC is on a strong financial footing. Our companies, led by Maynilad are evidencing the ability to deliver healthy, sustainable profits,” Manuel Pangilinan, chairman of the holding company, said.
Maynilad Water Services Inc. contributed P507.5 million to MPIC’s core net income, while Medical Doctors Inc. (MDI) and Davao Doctors Hospital (DDH) turned in P35.5 million and P1.4 million, respectively. Landco provided P9.1 million.
Jose Maria Lim, MPIC president and chief executive said the company’s profitability continues to gain momentum after the turnaround year of 2007, built on the significant contribution of Maynilad.
“When the acquisition of Manila North Luzon Tollways Corp. [MNTC] is completed in the fourth quarter of this year, we will have a balanced portfolio of investments that serves as a cornerstone for the future growth of our core businesses: utilities, infrastructure, and healthcare,” Lim said.
Recently, the MPIC board of directors approved the purchase of 67.1-percent ownership interest in MNTC at a cost of P12.2 billion. MNTC, which is the concession holder of the North Luzon Expressway, used to be controlled by First Philippine Holdings Corp. and Benpres Holdings Corp. through First Philippine Infrastructure Incorporated (FPII).
FPII owns 100 percent of First Philippine Infrastructure Development Corp., which in turn owns 67.1 percent of MNTC and 46 percent of Tollways Management Corp.
Lim said the acquisition of FPII would be funded by debt and equity financing. “We are in discussions with local banks for P6.68 debt financing,” he said, adding that the funding gap will be financed by First Pacific.
“The MNTC acquisition will enable the company to have a balanced and sizeable portfolio of investments which can deliver robust profits for the long-term on a sustainable basis. MPIC will continue to consider opportunities in its core sectors of infrastructure and healthcare, as well as in growth segments such as mining—but with continuing emphasis on managing and improving the efficiencies of its existing investee companies,” Pangilinan said.
“The second half of 2008 will show a marked improvement in profitability from the first half, on the back of sustained strong performance of Maynilad, the first time consolidation of our healthcare investments in MDI and DDH, and improved performance of Landco,” he added. -- Darwin G. Amojelar
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