Metro Pacific Investments Corporation-2010 Performance Review Part 1



Metro Pacific Investments Corporation or MPI is a holding company incorporated in March,  2006 whose business interest is real estate and infrastructure projects.

Business Details:
1. Tollroads - owned 99.85% of Metro Pacific Tollways Corporation, the concession holder of North Luzon Expressway (NLEX). As of Mar. 3 , 2011, the said company has been waiting for the formalization of turned over of Subic-Clark-Tarlac Expressway(SCTEx). Upcoming project is the NLEx to SLEx Connector Road Project. It also has minority interest in Citra(Skyway).


2. Water Utilities - owned 56.8% of Maynilad Water Services Inc., a concession that covers the west zone of Metro Manila and a large part of Cavite Province.

3. Power Distribution - owned 35% of Meralco shares.

4. Hospital - the following are the hospital subsidiary owned by MPI: Riverside Medical Center in Bacolod (51% owned), East Manila Hospital Manager's Corporation (100% owned), Makati Medical Center (35% owned), Davao Doctors Hospital (35% interest).




Business Performance:
My first reaction when I saw the revenue chart of MPI is "Wow!". The Revenue has grown like a perfect staircase as shown below(click to zoom).
The same case with the Net Income and Operating Cash Flow. Note that MPI was incorporated only in 2006, which explains its negative net income and cash flow at the initial year(it is normal for start-up business to lose initially). Also, the operating cash flow is significantly higher than the net income from 2008 up to 2010. The reason is because MPI is very active in acquisitions and so cash from operations are used up resulting to lower net income.

For 2010, MPI's revenues increased by 15% compared to previous year while Net Income increased by 21.6% mainly due to first full-year contribution from Meralco and increased income contribution of other operations.  Contribution from income is as follows: Water (44%), Toll Fee (26%), Meralco (27%) and hospitals (3%).

click here for the continuation : Metro Pacific Investments Corporation-2010 Performance Review Part 2







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