Quarter 2 Earnings
Metro Pacific Investments Corporation (MPIC) reported a drop in earnings by 9.8% in the second quarter of 2019. The net income during this period reached P4.6 billion and it was seen lower than the P5.1 billion net earning posted in the previous year during the same period. Now that the second quarter of the year is done and all companies are reporting their performance for the said period, it’s a good thing for investors to know the current state of the firm they are investing in or planning to buy stocks from. Let’s take a look at the factors that affect the net income of MPIC.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
ICON Iloilo – August 17, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
Foreign Exchange Losses
Along with the disclosure of the net losses, MPIC also told the public the reason behind these figures. According to the popular conglomerate, foreign exchange losses were one of the factors why the earnings dropped during this period. The firm said that the foreign exchange difference was compared to most companies wherein there was a reverse effect. When the peso was weakening, MPIC was getting foreign exchange gains and when the peso starts strengthening again, foreign exchange losses were generated. This was on foreign currency deposit of Meralco and some of its associate abroad. From gains last year, it turned out to be losses this quarter.
Meralco and MPTC Performances
To break down the P12.799 billion net income generated in the second quarter, here’s what MPIC has disclosed: its power business made up P6.1 billion of its core net income and its 4% higher year on year. All thanks to energy sales of Meralco that took a jump this quarter in spite of the Global Business Power Corporation’s slow contribution! 10% growth in total revenues or P165 billion was achieved if we take a look at the performance of Meralco alone. P2.4 billion core net income can be attributed to the toll road business operated through Metro Pacific Tollways Corporation (MPTC) and it’s 6% higher year on year.
MPHHI, LMRC, and Maynilad Water Services Performances
The recent news involving Metro Pacific Hospital Holdings, Incorporation (MPPHI) was about the extension of the tender offer to acquire stocks from Medical Doctors Inc. (MDI). This quarter, this hospital business of MPIC, reported a 21% hike in core net income. Outpatient visits improved by 10% while inpatient admissions grew by 6%. Light Rail Manila Corporation (LRMC) accounted for P168 million core net income and it was utilized again in order to improve the train operations. Lastly, Maynilad Services contributed P4.6 billion earnings, 9% higher than the previous year.
