THE Maharlika Investment Corp. (MIC) reported net income of P941 million in the third quarter, up 49%, driven by revenue from active investments.
At a briefing on Thursday, MIC President and Chief Executive Officer Rafael D. Consing, Jr. said revenues rose 42.7% year on year to P1.03 billion during the quarter.
“Half of (revenue) came from our active investments. In the first quarter, that share was 8%. In the second quarter, 27%… It’s now 50%,” he added.
Mr. Consing attributed the third-quarter increase in revenue to MIC’s share in the earnings of Asian Terminals, Inc. (ATI) and interest income from its loan to Petron Corp.
In the first nine months, net income was P2.18 billion, up 24% from a year earlier.
Revenues in the nine months rose 17% year on year to P2.41 billion.
“For the first nine months, investments contributed P757 million or 31% of revenue; in the same period last year it was 2%,” Mr. Consing said.
During the nine months, MIC recognized P292.7 million as its share of ATI net income, while its loan to Petron generated P343.4 million in interest income.
Mr. Consing said he expects active investments to account for more than half of MIC’s annual revenue in about a year to a year and a half.
MIC net assets stood at P79.35 billion at the end of September, not counting the P50-billion contribution still due from the National Government.
In the first nine months, MIC deployed P18.77 billion in capital, bringing its cumulative capital deployments to P24.7 billion since 2024.
Key deployments during the nine-month period included a P15-billion working-capital loan to Petron and P3.68 billion in additional cash payments for shares in ATI.
“Our pipeline is very active. We expect two or three more transactions to be announced before the year ends,” he said.
He said the potential investments cover utilities and infrastructure, industrials, and possibly agriculture, and could add P2.5 billion to P4 billion to deployed capital before year’s end. The transactions remain subject to due diligence and board approval.
However, Mr. Consing said MIC is unlikely to achieve its P35-billion cumulative deployment target by year’s end, adding that the stalled additional investment in Synergy Grid & Development Phils., Inc. (SGP) would have accounted for a significant portion of the target.
MIC will not proceed with the SGP transaction “at this time,” he said.
“That decision really followed our continuing evaluation of the transaction, and as the terms develop, over the course of the detailed negotiations, also within the context of what’s happening currently in geopolitics, we’ve decided to reassess,” he said.
He said the decision reflected MIC’s current priorities and its responsibility to exercise prudent stewardship of public funds.
He clarified, however, that MIC will retain its existing 1.93% stake in SGP, citing the significant dividends generated by the investment.
“The government’s interest in a secure and reliable transmission network remains unchanged, and it continues to be served through the regulatory framework that governs the grid. And also as SGP had said, the decision does not affect their financial position, so it shouldn’t be an issue,” he added.
Meanwhile, Mr. Consing said his term as MIC’s president and chief executive officer will end on Nov. 23.
He said any announcement on the transition would come from Malacañang.
“And what I can tell you is that MIC is very ready for it. It is an institution now with a team, a board, a set of policies, a portfolio, a process it has proven. And that will carry on,” he added.
Regarding his plans after his term ends, he said: “My focus really today is to make sure that the organization is left very, very strong. That, in fact, we’re going to be turning over to my successor a very healthy and an organization that we can all be proud of.” — Justine Irish D. Tabile