MNTC First Semester Results
1H 2014 Net Income Grew by 13% to Php1.34Bln
- 1H Core Income Up by 11% to
- 1H Net Toll Revenues Up By 5% to
- Average Daily Traffic Up by 7% to 185,267 vehicle entries
MANILA, Philippines, 18th August 2014 – Manila North Tollways Corporation (“MNTC” or the “Company”) reported net income of
P1.34 billion for the first half ended June 30, 2014, up by 13% over the P1.19 billion posted during the same period last year on the back of higher traffic volume and tighter control on expenses.
MNTC continues to generate strong traffic figures as average daily vehicle entries (“ADVE”) for the first six months of 2014 grew by 7% to 185,267 as against the 173,175 ADVE recorded during the same period last year.
Traffic volume spiked during the month of May, the peak of the summer travel season. For the month of May alone, MNTC posted record-high traffic volume at the NLEX reaching 194,643 ADVE, an impressive 9% growth versus May 2013. Both Class 1 and Class 3 vehicles posted a 10% growth for that month, recording 147,071 ADVE and 16,771 ADVE, respectively.
Buoyed by the increased commercial, infrastructure and real-estate developments in the North and Central Luzon, traffic volume of all vehicle classes improved as of the first half of the year. Class 1 vehicle traffic grew by 8% year-on-year, Class 2 traffic by 4% year-on-year and Class 3 traffic by 7% year-on-year.
Update on Expansion Projects
MNTC is about to complete the construction of Segment 9 of the NLEX Harbor Link Project which is slated to open to commercial traffic before the end of the year. This segment features a 2.4 kilometer, four-lane at-grade expressway that spans from the Smart Connect Interchange Cloverleaf to MacArthur Highway in Valenzuela City. Upon completion, motorists will be able to reach Mindanao Avenue in Quezon City within minutes from MacArthur Highway in Valenzuela City and vice versa bypassing EDSA altogether.
Pre-construction activities for the elevated portion of the NLEX Harbor Link known as Segment 10 are underway. This 5.6-km, four-lane elevated expressway will run from the terminal of Segment 9 in Valenzuela City and go south to C-3 Road/5th Avenue in Caloocan City above the alignment of the PNR railway tracks. Subject to timely delivery of required right-of-way, the Company aims to deliver Segment 10 on schedule. The Harbor Link Project will significantly reduce travel time to and from the North Harbor by more than half, providing truckers a viable alternative route to the Manila Port Area.
The Company successfully launched in the first quarter its Php7 billion fixed rate bonds to finance the construction of Segment 10. It also signed the construction contract for Segment 10 with Leighton Contractors Asia Ltd.
On 14 August 2014, MNTC received a letter from the Toll Regulatory Board dated 08 August 2014 informing the company of the Opinion of the Secretary of Justice (Opinion No. LML – 07G14 dated 07 July 2014) expressing the Secretary of Justice’s “strong reservations about the validity of proceeding with the implementation of the NLEX-SLEX Connector Project” under a joint venture arrangement between “MNTC and PNCC, as previously recommended by the NEDA". The TRB further informed MNTC that in light of the legal opinion, it will desist from processing the Connector Project under the joint venture mode to give the DPWH a free hand in determining the best course of action to take under the Unsolicited Proposal of Metro Pacific Tollways Development Corporation.
Forward Looking Statements
This press release may contain “forward-looking statements” which are subject to a number of risks and uncertainties that could affect MNTC’s business and results of operations. Although MNTC believes that expectations reflected in any forward-looking statements are reasonable, it can give no guarantee of future performance, action or events.