Metro Pacific Tollways posts quarter drop in net profits

Pangilinan-led Metro Pacific Tollways Corp. (MPTC) posted a quarter decline in net earnings last year after booking noncash tax provisions as it prepares for a possible value-added tax imposition on toll rates. The listed toll operator's net profits reached P581 million compared with P783.9 million in the prior year, the company told the Philippine Stock Exchange on Thursday. Excluding the tax provisioning, MPTC's core net income went up by almost a quarter to P1.22 billion. It traced the increase to higher than expected traffic reported by unit Manila North Tollways Corp. (MNTC), which holds the concession to operate and maintain the North Luzon Expressway. MPTC has a 67.1-percent stake in the MNTC. The MNTC's core net profits increased by almost a fifth to P1.5 billion last year. After deducting nonrecurring provisions, however, its net income dropped by almost three-quarters to P256.3 million. Toll revenues of P5.49 billion were slightly higher than P5.19 billion in the prior year, while average vehicle entries inched up by 6 percent to 150,395 daily — a record increase. Meanwhile, the MPTC also cited the higher contribution of the Tollways Management Corp. (TMC), which operates the North Luzon Expressway for MNTC and has an interim contract to operate the Subic-Clark-Tarlac Expressway. The MPTC has a 46-percent interest in the company. The TMC's core net profits were also up by almost a quarter to P297.8 million, while net profits went up by a similar rate to P345.2 million. Its revenues grew by 5 percent to P1.62 billion last year. — Norman P. Aquino, GMANews.TV