Metro Pacific Investments Corp.

NLEX flags high oil prices as concern

THE OPERATOR of the North Luzon Expressway (NLEx) is hoping to sustain its first quarter income and revenue growth for the full year, but flagged rising fuel prices as a concern.

“We’re hopeful, kaya lang mas maraming constraints na tumataas ang petroleum prices (but there are many constraints before of the rising prices of petroleum). That’s of course a concern for us not only as operators. It’s a concern for the motorists, baka mahirapan [they might find it difficult],” NLEX Corp. President Rodrigo E. Franco told reporters recently.

The Metro Pacific Investments Corp. (MPIC) tollways unit saw a net income of P1.29 billion in the January to March period, 20% higher than the P1.07 billion it earned in the same period last year.

In May, there was a series of price increases from oil firms across gasoline, diesel and kerosene.

“If the trend continues, sino ba naman ang gusto byumahe kung napapamahal na ang gasolina? (who would want to travel when the price of fuel is high?) People are going to at least reduce their travel frequency kung mahal ang traveling costs [if traveling costs are high],” Mr. Franco added.

In a regulatory filing, NLEX Corp. said its average daily vehicle entries grew by 9% at 250,989 in the January to March period, up from the 229,633 it posted in the same period last year.

“Increases in traffic on all domestic roads are attributable to the integration of the NLEx and SLEx (South Luzon Expressway), the opening of additional lanes in the NLEx in 2017, and the growth in residential communities in Cavite and tourism in Batangas,” the company said.

Mr. Franco said the 9% traffic growth recorded in the first quarter might be affected if oil prices will keep rising.

He said the company’s traffic growth target for the full year is 5-6%.

The other tollways units of MPIC also saw an increase in traffic in the first quarter. The Subic-Clark-Tarlac Expressway posted a 17% traffic growth, and Manila-Cavite Expressway 8%.


MPIC logistics unit to build warehouses in Cavite

THE logistics unit of Metro Pacific Investments Corp. (MPIC) will be setting aside P8 billion for the development of warehouses in Cavite, as it aims to become a leading player in the logistics space.

In a disclosure to the stock exchange on Monday, MPIC said its wholly-owned subsidiary Metropac Movers, Inc. (MMI) has signed the deal with Property Company of Friends (ProFriends) to buy 202,000 square meters (sq.m.) of land worth P1.2 billion in General Trias.

ProFriends is one of the property firms under tycoon George S.K. Ty’s conglomerate, GT Capital Holdings, Inc., which in turn is the second largest shareholder of MPIC.

MMI has allocated P8 billion “to develop the property into 141,000 square meters of covered warehouse space and purchase the equipment to service its clients.”

“The property… will be used by MMI to develop and manage distribution centers for its existing and potential clients in the fast moving consumer goods, consumer durables, automotive and e-commerce spaces,” MPIC said.

In addition, MMI plans to purchase another 300,000 sq.m. of land in Bulacan.

MPIC said the completion of the warehouses can provide employment to around 7,000 residents of Cavite and Bulacan. To-date, MMI employs about 2,400 people under its existing warehouses and owned trucks.

The company currently has 207,000 sq.m. of leased warehouse space across the country.

These warehouses will complement the 522 new trucks acquired by MMI in the fourth quarter of 2017.

“These resources…will be utilized by MMI to build the leading logistics firm in the Country, the first choice of existing and future clients for their logistics needs — “the ONE logistics company”. It will fulfill a much needed function in today’s fragmented logistics market where resources to efficiently track and deliver goods to all parts of the Philippine Archipelago are still lacking,” MPIC said.

The listed conglomerate has been ramping up its investments in the logistics industry, announcing earlier this year that it is on the look out for two to three logistics firms this year. It is currently in the closing stages of acquiring transport and logistics solutions provider Air21.

MPIC grew its core profit by 16% to P3.6 billion during the first quarter of 2018, following a 68% jump in gross revenues to P19.4 billion.


MPTC subsidiary gains control of Indonesian firm

METRO Pacific Tollways Corp. operates three major tollways in the Philippines. — MPIC.COM.PH
A UNIT of Metro Pacific Tollways Corp. (MPTC) gained control of Indonesian infrastructure firm PT Nusantara Infrastructure Tbk after increasing its stake to more than 50%.

In a disclosure to the stock exchange on Tuesday, MPTC’s parent Metro Pacific Investments Corp. (MPIC) said PT Metro Pacific Tollways Indonesia (PT MPTI) acquired an additional 760 million shares in PT Nusantara, or 4.99% of the company’s total issued capital stock on a fully diluted basis.

The transaction, valued at a total of P597.33 million, or 79 centavos per share, was executed through a cross sale on the Indonesian Stock Exchange.

This brings PT MPTI’s stake in PT Nusantara to 53.26%, solidifying its control of the company that has interests in tollroads, water, energy, port operations, and telecommunications.

“The transaction is expected to enhance profitability and strengthen the balance sheet of MPTC,” the listed parent company said.

Since PT MPTI now holds a majority of PT Nusantara’s shares, the company is required to conduct a mandatory tender offer to its minority stockholders. The minority shareholders collectively own 44.21% of PT Nusantara’s outstanding capital stock, with the balance of 2.53% held as treasury shares.

The company expects the tender offer price to be at around 79 centavos per share or 211 Indonesian Rupiah (IDR). With this, the entire tender offer size could reach IDR 1,421 billion or around P5.29 billion. The final tender offer price will require approval from the Indonesian Financial Services Authority.

PT MPTI said it will secure bank loans to finance the acquisition of the additional shares as well as the tender offer.

The listed infrastructure conglomerate initially owned 42.25% of PT Nusantara through a partnership with MPT Asia Corp. and PT MPTI. It further increased its interest in PT Nusantara to about 47.08% last November.

PT Nusantara operates a total of 34.47 kilometers in toll roads in Indonesia. The investment in the firm forms part of MPIC’s plan to expand its tollway business in Southeast Asia.

MPIC currently has a presence in Thailand through a 29.45% stake in Don Muang Tollway Public Company Limited in Bangkok. In Vietnam, it also holds a 44.9% stake in CII Bridges and Roads in Ho Chi Minh City.

Locally, MPIC operates three major tollways under MPTC, namely the North Luzon Expresssway (NLEx), Subic Clark Tarlac Expressway, and Cavite Expressway. MPTC has three other toll roads under construction: Cavite-Laguna Expressway, the Cebu-Cordova Link Expressway, and the NLEx-South Luzon Expressway Connector Road.

The conglomerate booked a consolidated core net income of P3.6 billion in the first quarter of 2018, 16% higher year on year on the back of better than expected volume growth in its business units.

MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., with the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.

...ayus! pagkatapos ng bagong airport, bagong bridge naman Smile

MPTC starts work on Cebu-Cordova expressway

CEBU CITY — A Metro Pacific Tollways Corp. (MPTC) unit began on Thursday the construction of a toll bridge that will connect Mactan island to mainland Cebu.

“It’s a project that will take three years to construct, so we expect completion in 2021,” MPTC President Rodrigo E. Franco told reporters on the sidelines of the ceremony here.

The 8.5-kilometer Cebu-Cordova Link Expressway (CCLEx) have a two-lane road, a main bridge, a viaduct at Cordova, an eight-lane toll plaza and a causeway. MPTC unit Cebu Cordova Link Expressway Corp. (CCLEC) is in charge of the project.

Mr. Franco said the company is looking to charge a maximum P89 toll fee at the CCLEx.

He said the total project cost is estimated at P26 billion to P29 billion, taking into consideration “indirect project costs” that may arise.

Mr. Franco said the company is raising funds of around P18 billion to P19 billion through syndicated loans from local banks.

The MPTC official said the toll bridge could cut travel time from Mactan to Cebu by half as the Mactan-Mandaue and Marcelo Fernan bridges are connected to the northern part of Cebu, while CCLEx would end in the south.

“Before if you’re coming from, let’s say, the business district of Cebu City, you still have to go to northern Cebu. You have to go to Mandaue before you can cross the bridge. So it takes time. Now, those coming from the business district, coming from southern Cebu City, you just cross the bridge then you’ll be in Mactan,” Mr. Franco said.

An initial traffic of 40,000 vehicles a day is expected on the CCLEx.

Public Works and Highways Secretary Mark A. Villar said the government is also looking to construct a fourth Mactan-Cebu bridge, which is subject of a feasibility study by the Japan International Cooperation Agency (JICA).

“Meron po kaming ginagawang plano ngayon sa fourth bridge. Well, we’re hoping to start pag natapos na ’yung mga ginagawa ng JICA. We’re hoping na we could finish the feasibility and the engineering design by this year para next year makapagsimula na [We’re planning a fourth bridge. We’re hoping to start when JICA finishes its feasibility study. We’re hoping to finish the feasibility study and engineering design by this year so the project could start next year],” he told reporters on the sidelines of the event.

Based on the JICA study, he said one more bridge is needed to decongest the Metro Cebu traffic, even when the CCLEx opens.

While details of the fourth bridge project have yet to be finalized, Mr. Villar is confident the project could be finished before 2022.

For Mr. Franco, the proposed fourth bridge is no threat to its business because its landing will likely be in northern Cebu, while CCLEx is in south.

CCLEx is MPTC’s first project outside of Luzon done in cooperation with the local government of Cebu. In the future, the tollways company said it may still pursue projects in Cebu again.



P23.3-billion expressway connector  project on track–Metro Pacific

Metro Pacific Investments Corp. is mobilizing initial civil works for the P23.3-billion Connector Road, in time for the full-blast construction of the said highway in the first half of 2019.

Rodrigo E. Franco, who sits as president at Metro Pacific Tollways Corp., said the company aims to start building the link road for the North and South Luzon Expressways (Nlex-Slex) within the first three months next year.

He noted, however, that his group is implementing advance works for the said thoroughfare section.

“We would want to be able to mobilize construction toward  the fourth quarter and full-blast construction is for the first quarter of 2019,” Franco said in an interview in Cebu last week.

He noted that right-of-way acquisition and delivery are “moving.”

“The government’s deadline is to deliver the first section in the second quarter of next year,” he said. “So were working within the timetable.”

The Connector Road is envisioned to be an 8-kilometer (km), four-lane elevated toll road that will connect the Nlex and Slex.

It will extend the southward portion of Nlex from the end of Segment 10 in C-3 Road Caloocan City to PUP Santa Mesa, Manila and connecting to the Skyway Stage 3, and mostly traversing the PNR rail track.

The project, which has a price tag of P23.3 billion, includes two interchanges at C-3 Road, Caloocan and España, Manila.

Franco earlier said his group is keen on tapping the bond market to fund the P16 billion in construction costs for the Connector Road.

The Connector Road will be operated by Nlex Corp.

Infrastructure conglomerate Metro Pacific is the largest toll road company in the Philippines. It also has interests in expressway operators in Vietnam, Thailand, and Indonesia.


MPTC unit gets original proponent status for CTBEx

MPTC unit gets original proponent status for CTBEx
MPCALA Holdings, Inc.’s proposal will now proceed to next approval stage.

A UNIT OF Metro Pacific Tollways Corp. (MPTC) has been awarded the original proponent status (OPS) by the Department of Public Works and Highways (DPWH) for its Cavite-Tagaytay-Batangas Expressway (CTBEx) project on Thursday.

“Malaking bagay itong project dahil yung mga pupunta sa Tagaytay, instead of two and a half hours, baka a little more than one hour na lang magiging travel time nila. So napakalaking bagay sa decongestion. Pati yung mga pupunta sa Nasugbu, definitely maka-cut yung travel time (This is an important project because those going to Tagaytay would have reduced travel time from two and a half hours to a little more than an hour. It will contribute a lot to decongestion. Even for those going to Nasugbu, it will definitely help cut travel time),” DPWH Secretary Mark A. Villar said in an interview after the awarding ceremony in Silang, Cavite.

One year after MPCALA Holdings, Inc. submitted the proposal to the DPWH, it is now ready to go through the next step in securing a private-public partnership with the government: getting approval from the Investment Coordination Committee of the National Economic and Development Authority (NEDA-ICC).

The CTBEx proposal is the first toll road project to receive OPS from the Duterte administration. It aims to build a 50.42-kilometer toll road that will connect the Cavite-Laguna Expressway (CALAX) at Silang East Interchange to Tagaytay City and Nasugbu, Batangas.

Once completed, the expressway is expected to cut travel time from Governor’s Drive to Nasugbu by 58 minutes, and from Sta. Rosa to Tagaytay by 1 hour and 15 minutes.

While Mr. Villar hopes to open CTBEx by 2022, MPTC Chief Finance Officer Christopher Daniel C. Lizo said during the program yesterday it is committing to deliver only at least the first two sections of the toll road by the said year.

“This year we are going through the NEDA-ICC process. Once we go through the Swiss challenge, we can start on the project,” the DPWH secretary said. He added that the 60-day Swiss challenge is targeted to begin by second quarter of 2019.

Under the Swiss challenge, third party companies may submit counter proposals which Metro Pacific may match.

MPCALA Holdings President Luigi L. Bautista told reporters they will begin fund-raising for the P22.43-billion project after the Swiss challenge.

“By the time that we get the final award, that’s the time that we’ll go to the lenders and seek funding,” he said.

MPTC is a unit of Metro Pacific Investments Corp. (MPIC). MPIC is one of three key Philippine units of Hong Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.


...advanced mag-isip, very good

MPIC looks to build LNG terminal

METRO PACIFIC Investments Corp. (MPIC) has joined local and foreign companies that have signified their intention to build a liquefied natural gas (LNG) import terminal ahead of the depletion of the country’s lone source of the fossil fuel — the Malampaya offshore gas field.

“We’re studying that,” MPIC Chairman Manuel V. Pangilinan told reporters after the quarterly media briefing on Monday of Manila Electric Co. (Meralco), the distribution utility which he also chairs.

Asked about the target completion date of the study, he said: “Maybe early next year.” He said should the group decide to pursue the project, it would be undertaken “between Meralco and MPIC.”

Mr. Pangilinan said he wanted the LNG import terminal to be started “as soon as feasible.” He said the urgency of putting up the facility is dictated by the time it takes to complete its construction.

“It takes minimum three years to build a gas terminal… minimum 10 years to build a gas field. So we are slowly hitting the wall if we don’t move,” he said.

Natural gas, said to be the cleanest fossil fuel, is transported through a pipeline. But if the deposit is large and the market is overseas, the gas may be liquefied for ease of shipping and moved through specialized tankers. Imported LNG is then regasified or reverted to its former state in the country of destination.

Mr. Pangilinan said the country should be aware that building an LNG import terminal is just a means to an end. Its main users are the existing local gas-fired power plants.

At present, the country’s natural gas supply comes from the Malampaya gas field off the coast of Palawan province. Five gas-fired power plants in Batangas province, with a combined capacity of 3,211 megawatts (MW), are the main customers of the fuel source, which is expected to be depleted by 2022 to 2024.

Mr. Pangilinan said a number of questions should be answered before putting up an LNG terminal, including its cost, how it would translate into power rates, and how the fuel will be transported to the power plants and into the market.

He said determining the capacity of the LNG terminal is “complicated.”

“We do know the likely demand of the Philippines will be for the next 15 years, the question is, what’s the mixture of fuel sources [that] will meet the demand in the next 15 years,” he said.

“Our estimate is the demand is currently 15-16,000 MW of consumption,” pointing to Meralco’s power demand data.

The distribution utility placed demand for electricity within its franchise to have peaked so far this year at 7,399 MW on May 23. Luzon’s peak demand so far this year is at 10,876 MW, which was registered on May 28.

“We expect that to double at a certain assumption on economic growth of the Philippines,” Mr. Pangilinan said. “So we need another 15-16,000 [MW] plus any new plants that need to be built to provide us adequate margins. At the moment, margin is not adequate. So you have to build X thousand MW.”

“The question is, [what] fuel source is the most efficient. Paramount [to that question] is the cost to consumer,” he said.

“The industry alone cannot decide on the mix. The government has a big say. They will approve the power plants and the costs to produce,” he said, adding that the industry and the government should hold a “dialogue” to arrive at answers.

Asked about whether the MPIC group had informed the Department of Energy (DoE) about the LNG plan, he said: “[We are] about to. We have to prepare our own brief.”

In June, the DoE said it was expecting to start receiving towards the end of 2018 firm proposals from the local and foreign companies that are keen on putting up an integrated facility for imported LNG. It earlier said about 11 investors had come forward to express their interest in building the facility.

MPIC is one of three Philippine units of Hong Kong based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT.

8-1 investments

Metro Pacific to expand Delgado Hospital in 5 years

MANILA, Philippines — Dr. Jesus C. Delgado Memorial Hospital (JDMH), now majority owned by Metro Pacific Investments Corp. (MPIC), plans to expand in the next five years.

In a press briefing yesterday, JDMH officials said they are targeting to increase the number of its beds to 100 by 2022.

Rodriquez said MPIC has invested heavily in Delgado Hospital which allowed  the healthcare facility to bring in new and modern equipment.

“We are in talks with our neighbors for the purchase of properties beside us.  We are also looking at coming up with satellite clinics,” Rodriguez said.

JDMH board director Ma. Violeta Delgado-Cojuangco, who represents the Delgado family, said they are happy to partner with MPIC.

At the same time, she said the family would continue to retain a stake in the hospital to honor the legacy of her father, the late Dr. Jesus Delgado.

Rodriguez said MPIC has no intention of taking full ownership in JDMH.

Last year, MPIC acquired the Delgado Clinic Inc. (DCI), which operates JDMH, for P133.56 million.

DCI is a tertiary general hospital located along Kamuning Road in Quezon City.

JDMH joins MPIC’s portfolio of hospitals which include Makati Medical Center, Asian Hospital, Cardinal Santos Medical Center, Manila Doctors Hospital, De Los Santos Medical Center, Our Lady of Lourdes Hospital, and Marikina Valley Medical Center.

Aside from these facilities, MPIC also has at least five provincial hospitals namely Davao Doctors Hospital, Riverside Medical Center in Bacolod, Central Luzon Doctors’ Hospital in Tarlac, West Metro Medical Center in Zamboanga, and Sacred Heart Hospital in Malolos, Bulacan.

8-2 dividend 0.0345 per share payable september 25


...for Maynilad (MPI) and Manila Water (MWC)

Water concessionaires seek to raise rates to fund P183-B capex

METRO MANILA’S two private water concessionaires plan to spend a combined P183.531 billion starting this year through 2022 for projects that will allow them to meet the requirements of their concession agreement, including service continuity and water security.

Manila Water Co., Inc. plans to spend P89.661 billion for the five-year period, while Maynilad Water Services, Inc. has earmarked P93.87 billion.

To fund the massive capital expenditure, Ayala-led Manila Water is seeking to raise water rates in the east zone concession by P8.30 per cubic meter (cu.m.), while Maynilad is looking to increase rates by P9.69 per cu.m. in the west zone concession.

On Aug. 1, the Metropolitan Waterworks and Sewerage System-Regulatory Office (MWSS-RO) posted the separate business plans of the two companies for the fifth regulatory period covering 2018 to 2022.

Included in the plans are the projected spending for the sixth regulatory period through 2037 when their concession agreement with the government ends. All business plans are pending approval by the MWSS regulatory office.

“We expect to release the indicative tariff during the next public consultations, which will be held at the end of the month or early September,” said MWSS Chief Regulator Patrick Lester N. Ty.

The major points that “will have the most effect on the tariff” are the capital expenditure projects of the concessionaires, Mr. Ty said in a text message.

In its business plan, Maynilad said with its opening cash position at negative P88.65 billion and provided that the government pays in full the company’s foregone revenues by Dec. 1, 2017, it computed a rebasing adjustment of P9.69 per cu.m. or 29.63% over the 2017 average basic charge of P32.70 per cu.m.

Had the MWSS and the regulatory office implemented the final award according to its terms, Maynilad said the average basic rate as of 2017 would have been P35.89 per cu.m., thus the adjustment for the fifth rebasing period would have been only P6.50 per cu.m. or an increase of only 18.11%.

For its part, Manila Water said that for it to accomplish its service obligation under its business plan, the company is proposing a rate convergence adjustment of 33.14% of the basic average tariff of P25.05 or P8.30 per cu.m.

With that rate, the Ayala-led company said residential customers consuming an average of 10 cu.m. per month will have a monthly water bill of P175, or roughly 1% of the average monthly household income.

Average residential customers consuming 30 cu.m. will have a monthly bill of P787 or an increase of P195 per month, the company said. It added that low-income customers will still enjoy 40% discount on their basic water charge, thus tempering the rate increase to only about P25 per month.

Manila Water said the proposed rate convergence adjustment for the 2018 rate rebasing period is driven largely by five factors, among which is the inclusion in the concession fee payments of the debt service for the New Centennial Water Source-Kaliwa Dam Project.

“Manila Water remains open to discussion with the MWSS-RO to review the existing tariff structure,” the company said.

Maynilad also included the Kaliwa dam project in its computation, saying that of the P30.384 billion concession fees for 2018 to 2037, up to 47% relates to proposed new water source. The company said the dam was initially among the projects to be funded by the concession fees, but the MWSS had informed the concessionaires that the national government would instead fund it, thus it was taken out from the business plan in 2012.

“But in 2016, the Concessionaires were informed by the MWSS that the national government would no longer fund the Kaliwa Dam Project and the same should therefore be reinstated in the Company’s 2018 Business Plan as among the projects to be funded by the Concession Fees,” Maynilad said.

In its 2018-2022 business plan, Manila Water placed its capital expenditure for service security at P10.085 billion, water security at P24.704 billion, service accessibility at P17.431 billion, and environmental sustainability at P37.441 billion.

The company placed its capital expenditure for 2023-2037 at P132.526 billion.

For Maynilad, spending for the five years to 2022 is broken down as 28% for water sources and treatment, 16% for operations support, 20% for non-revenue water management and service expansion, 33% for wastewater, and 3% for customer service and information. It has earmarked P242.157 billion for 2023-2037.


Forum Jump:

Users browsing this thread: 2 Guest(s)