Metro Pacific Investments Corporation (MPIC) is raising its guidance core net income by 10 percent on the back of strong core net income growth in the first half of the year.

MPIC reported a three percent improvement in consolidated net income attributable to the parent company to P1.75 billion in the first half of 2010 from P1.70 billion in the same period last year.

This reflects a net foreign exchange loss of P691.8 million and non-recurring losses of P172 million.

MPIC’s reported net income was up 1.5 percent to P3.07 billion from P3.02 billion.

Excluding non-recurring items, consolidated core net income surged 169 percent to P1.93 billion from P716 million in the first half of 2009 as a result of stronger contributions from most operating companies.

“The positive results for the first half of this year reflect management’s commitment to growth through strong operating efficiencies, highly focused customer service and strict cost discipline at our portfolio companies,” said MPIC chairman Manuel V. Pangilinan.

He added that, reflecting our strong operating performance during the period, we are modestly confident in raising our guidance on core profitability for the year 2010 to P3.3 billion from the earlier figure of P3 billion.”

The firm said the improvement in core net income is attributable to higher contributions from Maynilad Water Services Inc. as a result of higher billed volume, Metro Pacific Tollways Corporation due to higher average daily traffic and Manila Electric Company for its first profit contribution.

Maynilad accounted for P1.28 billion or 46 percent of net profit contributions from MPIC’s portfolio companies, MPTC contributed P761 million or 27 percent, Meralco added P666 million or 24 percent, while the healthcare group accounted for P67 million or 3 percent of total.

“The performance of Maynilad, MPTC and Meralco in the first half of the year bodes well for the future and demonstrates our relentless focus on improving operational efficiencies, lowering costs and enhancing service to our customers,” said MPIC president Jose Ma. K. Lim.

Meanwhile, MPIC’s board of directors declared a cash dividend of one centavo per common share, payable to shareholders as of the record date of August 19, 2010 with payment date of September 16, 2010.

“In accordance with our longstanding goal to create shareholder value, we are pleased to announce an initial cash dividend to our stockholders based on positive and strong performance from our investments,” said Lim.

MPIC’s portfolio companies are allotting a total of P116.6 billion over the next five years to pursue their expansion and diversification programs. However, all these will be raised at the project level except for the tollroads business.

Meralco is spending P50 billion over the next five years as it plans to go into power generation while Maynilad will need P35 billion to expand to unserved areas while looking for alternative water sources.