MPIC 2016 Core Net Income Up 17% to Record ₱12.1B

AF Payments Inc. (AFPI) holds the Automated Fare Collection System (AFCS) franchise for LRT-1, LRT-2, and MRT-3. Through a contactless payments card known as the “beep™ card”, AFPI has created an integrated ticketing system for the light rail lines allowing commuters to switch seamlessly from one line to another. To date, 2.9 million beep™ cards are in circulation and our goal is to continue to expand its usage in public transport, toll roads and retail establishments.

LOGISTICS

On 19 May 2016, MPIC through MetroPac Movers Inc. (MMI) invested ₱2.2 billion to acquire the business and assets of a group of logistics service providers including Basic Logistics Inc. Core income for MMI in 2016 amount to ₱66 million.

On 24th January 2017, MMI announced it signed an agreement to acquire certain assets and business of Ace Logistics Inc. (Ace) for an aggregate purchase price of ₱280 million. On its completion, the acquisition will increase MMI’s reach and range of service offerings.

On top of this initial investment, MPIC expects to invest an additional ₱2.5 billion in this business over a five-year period to support organic growth. There is strong demand for logistics services and the lightly regulated sector offers the prospect of attractive returns.

Corporate Social Responsibility (CSR)

MPIC continues with its own CSR initiatives while supporting the various CSR advocacies of the group. Here are some highlights:

  • One Meralco Foundation’s school electrification program reached its 170th school and has continued to provide power restoration in provinces stricken by typhoons.
  • Through the Lingkod Eskwela Program, Maynilad installed a total of 52 drinkwash stations in 46 public schools in 2016.
  • MPIC’s Shore it Up is in discussion with Cordova’s local government for the creation of the first Mangrove Propagation and Information Center (the Mangrove Center) in Visayas. The Mangrove Center will serve as the hub for the protection and propagation of Cordova’s 278 hectares of mangroves and will also offer livelihood opportunities through the Mangrove Eco-Guide training program.
  • LRMC’s Live for the Rivers, a program with government agencies and barangays helped clean-up the Estero de Tripa de Gallina, the longest creek in Metro Manila.

Conclusion and Outlook

“We invested over ₱40.5 billion in capex for our infrastructure development in 2016 to enable us to continue providing first class medical care, safe and efficient road and rail transportation, electricity to power homes and businesses, and clean, safe water to improve consumption and sanitation,” said MPIC Chairman Manuel V. Pangilinan. In addition, our level of investment in new and existing businesses totaled ₱32.7 billion. In aggregate therefore, our capex and investments for 2016 recorded an unprecedented level of ₱73.2 billion.”

“All our businesses are fully focused on service quality and operational efficiency, while at the same time growing our sales and core profitability. The strong results for 2016 reflect our continuing expansion of investment, steady improvements in service levels and some financing efficiencies for our operating companies.”

He concluded, “The overwhelming demand for the services we provide, against the backdrop of strong economic growth, underpins our outlook for 2017. While it is too early to give earnings guidance for the year, it is self-evident that returns to shareholders, who have so far supported our extensive level of investment, will depend on the resolution of our long-pending tariff issues.”

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