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%.
The consolidated net income of the company’s toll operations reached P3.587 billion in the first three months of the year, higher by 16% from its 2017 first quarter figure. — Denise A. Valdez
