Metro Pacific Investments Corp. (MPIC) announced Tuesday its core net income during the first quarter of the year was more than nine times what it recorded a year ago, driven by the strong performance of its water and hospital units as well as its newly acquired tollroad business.

In a statement, MPIC said core net income in January to March rose to P356 million from the restated P38 million last year.

MPIC owns Maynilad Water Services Inc., Metro Pacific Tollways Corp. (MPTC), Medical Doctors Inc. and Davao Doctors Hospital.

Including foreign exchange gains, minority interests and amortization of concession assets under Maynilad, MPIC booked a 69 percent increase in first-quarter net income to P552 million from last year's restated P326 million.

MPIC noted that the 2008 numbers were revised to reflect the impact of new financial reporting rules covering water concession firms, and the non-consolidation of Landco Pacific Corp., which it decided to partly divest later that year.

Maynilad contributed P245 million to MPIC's first-quarter core earnings. The company achieved a net income of P695 million during the period on the back of a 13.7 percent jump in billed volume, an 8.4 percent increase in its customer base, and the reduction in its non-revenue water.

Maynilad is currently seeking a 15-year extension of its concession contract, which is set to expire in 2022. The company, which services the west zone of Metro Manila, said the extension will allow it to accelerate and raise its capital expenditure program and mitigate tariff increases in the future.

MPTC, meanwhile, posted a 6 percent increase in net income to P312 million, and turned in P309 million to MPIC. MPTC owns 67 percent of the Manila North Tollways Corp., the concession holder of the North Luzon Expressway (NLEX); and 46 percent of the Tollways Management Corp., which operates the NLEX.

MPIC's hospital group also reported better financial results.

Medical Doctors Inc., the owner and operator of the Makati Medical Center and the Cardinal Santos Medical Center, reported a 46 percent jump in consolidated revenues to P1.06 billion from last year's P722 million. Its core net income attributable to MPIC rose to P29 million from P21 million.

On the other hand, Davao Doctors Hospital's core net income grew 58 percent to P38 million from P24 million, and it contributed P13 million to MPIC.

Given MPIC's robust first-quarter numbers, its chairman Manuel V. Pangilinan said they are likely to raise their full-year core income target this year. MPIC earlier gave a guidance of P1.2 billion for 2009 core earnings, way above the P347 million recorded in 2008.

"The first quarter results of MPIC in 2009, which were well ahead of 2008, provide us with a great deal of optimism that our full year numbers will rise significantly compared with last year’s. It is likely that we will guide our 2009 core net income at a level higher than originally provided. We will have a clearer idea of our latest guidance profit number when MPIC announces its first six months results sometime in August of this year,” noted Pangilinan.

MPIC is currently in talks with the retirement fund of affiliate Philippine Long Distance Telephone Co. for the acquisition of a 10.17 percent stake in the Manila Electric Co.

"The independent valuation exercise is continuing. On the other hand, discussions concerning other terms and conditions to be agreed by the parties are ongoing," said MPIC.