NLEX’s profit increased 22% to P2.9b in H1

Toll road operator NLEX Corp. said net income grew by over a fifth in the first semester on higher vehicle traffic at the North Luzon Expressway and Subic-Clark-Tarlac Expressway.

The company said net profit from January to June reached P2.9 billion, up 22 percent from P2.3 billion in the same period last year.

NLEX attributed the growth in revenues in the six-month period to higher toll collection at NLEx and SCTEx and more efficient utilization of resources covering toll operations and maintenance costs.

Toll revenues reached P6.7 billion, up 15 percent year-on-year on the steady increase in traffic and toll revenue contribution from both NLEx and SCTEx operations and increase in non-toll revenues.

Non-toll revenues also climbed to P100 million from P83 million with the increase in royalty fees, utility facility fees and other non-toll initiatives.

Subsidiary NLEX Ventures Corp. contributed P14.8 million, mainly from the commercialization of roadway maintenance services.

NLEX spans 95 kilometers, or 527 lane-kms, and services an average of 254,791 vehicles a day.

NLEX Corp. said net income in 2017 rose 14 percent to P4.64 billion from P4.09 billion in 2016 on  robust vehicle traffic growth in the two toll roads.  Toll revenues reached P11.6 billion last year, up 10 percent from 10.5 billion in 2016.

NLEx vehicle traffic reached an average of 237,046 daily entries last year, or 8 percent higher than in 2016, while traffic at SCTEx reached 54,566 daily vehicle entries, up 21 percent.

NLEx contributed 84 percent of toll revenues, while SCTEx cornered 16 percent.

The company said aside from toll revenues, the company generated revenues of P174.4 million arising from advertising, toll services and utility facilities and rental and service income in 2017 from P157.4 million in 2016.

The North Luzon Expressway spans approximately 95 kilometers, or 527-lane kilometers, and serves an average of 237,046 a day. It is the main infrastructure backbone that connects Metro Manila to Central and Northern Luzon.

SCTEx, meanwhile, is a 94-km, 2x2 expressway stretching from Subic-Tipo to La Paz, Tarlac, connecting the special economic zones in Subic and Clark and Olongapo City, to Tarlac City.

The toll road company earlier budgeted P19 billion in capital expenditures this year to build new projects and help resolve Metro Manila’s traffic bottlenecks.

It is spending to build the urban portions of North Luzon Expressway, such as the Harbor Link Segment 10 (including the R10 Section in Dagat-Dagatan, Navotas City) and the NLEx-SLEx Connector Road project.

http://manilastandard.net/business/banking-report/273401/nlex-s-profit-increased-22-to-p2-9b-in-h1.html

The NLEX Harbor Link could finally be completed by end of 2018

During their latest site inspection of the NLEX Harbor Link project, the NLEX Corporation and the Department of Public Works and Highways (DPWH) said that they expect Harbor Link's Segment 10, the final phase being constructed, to be completed by the end of 2018—two years beyond the original target date.

Delays in right-of-way acquisition have pushed back the completion of the project, but the DPWH has now delivered 95% of total right-of-way requirements, with only 4% and 14% of acquisitions pending in Valenzuela City and Caloocan City, respectively. "We are committed to deliver the remaining right-of-way so we can finish this important infrastructure that will decongest traffic in Manila as soon as possible," said DPWH Secretary Mark Villar.

The NLEX Harbor Link elevated expressway comprises Segment 9, a 2.42km sector from the SMART Connect Interchange to MacArthur Highway in Valenzuela City; Segment 10, a 5.45km stretch from MacArthur Highway to C3 Road in Caloocan City; and the R10 extension, a 2.5km section that terminates in Navotas City. The total cost for all three segments is roughly P20 billion.

The Segment 9 tollway was opened to traffic in March 2015. Once completed, the NLEX Harbor Link is expected to reduce the current travel time from Navotas City to Valenzuela City by half, to just 11 minutes. With the capacity to accommodate some 30,000 cargo trucks on a daily basis, it should likewise lessen traffic congestion on city roads by offering an alternative route to and from NLEX.

The NLEX Corporation also announced earlier this month that its target start date for the construction of the NLEX-SLEX Connector Road has been moved from May 2019 to January 2019, crediting the DPWH’s "faster and efficient right-of-way acquisition and delivery" for the earlier schedule.

Spanning 8km, the four-lane Connector Road is an elevated expressway from Segment 10 of the NLEX Harbor Link in Caloocan City to PUP in Santa Mesa, Manila. Its first section will connect C3 Road to España Boulevard. The project, with an estimated cost of P23 billion, is slated for completion by December 2020 instead of the original May 2021 target.

Do you think these projects will be completed on schedule?

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