The power segment continued to be the main driver of growth with 4Q16 and 2016 earnings contribution increasing by 638% to P1.54b and 59% to P7.23b, respectively.
MPI’s growth was due to higher shareholdings in Manila Electric Co (MER) and additional profit contribution of P814m from newly-acquired company Global Business Power Corp (GBPC).
In addition, there was a noticeable lower interest and higher interest expense from MER parent, Beacon Electric Asset Holdings.
- The toll road businesses also posted a 32% growth in net income to P899m in 4Q16 and 24% to P2.83b for the full year due to strong traffic growth (7%-34%), the full-year contribution from SCTEX (vs only three months in 2015), and lower interest expense from MNTC.
- The hospital group posted slightly lower earnings of P146m in 4Q16 but full year profits still rose 25% to P589m, boosted by incremental contribution from new hospitals as well as lower interest costs, cost savings from purchasing synergies and higher patient revenues from existing hospitals.
- Maynilad Water Services Inc contributed lower earnings of P859m in 4Q16 and P3.56b due to the expiration of the company’s income tax holiday effective Dec 2015.
- Light Rail Manila Corporation (LRMC), in which MPI holds an effective 55% stake, took over the management and operations of the LRT Line 1 last September 12, 2015. It contributed earnings of P229m in 2016, a reversal from losses of P31m.
