NLEX posts P4.5B income in H1

NLEX Corp. said net income rose 28 percent in the first half of the year, driven by vehicle traffic recovery and increase in toll rates.

The operator of North Luzon Expressway (NLEx) and SubicClark Tarlac Expressway (SCTEx) posted a net income of P4.5 billion in the January to June period, higher from P3.5 billion in the same period last year.

The company recorded revenues amounting to P10.4 billion, 23-percent higher than 2022 figures due to stronger traffic demand and implementation of toll rate adjustments during the quarter.

It implemented toll rate adjustments in NLEx and SCTEx in May 2022 and June 2022, respectively.

All vehicle classes posted double digit growth in revenues with Class 1 revenues growing by 19 percent, Class 2 by 31 percent, and Class 3 by 21 percent. This is partly due to the base effect of mobility restrictions still enforced during the first quarter of 2022.

As of June, average daily traffic in NLEx reached 322,540 daily vehicle entries, higher than 2022 figures by 16 percent, while average daily traffic in SCTEx reached 80,938 daily vehicle entries or 14 percent above last year’s figures.

The company’s total cost of services amounted to P3.7 billion, up 17 percent from P3.2 billion in the same period last year.

NLEX paid P999 million in concession fees to the Bases Conversion and Development Authority (BCDA), representing 50 percent of toll revenues in SCTEx.

As of the second quarter of 2023, concession fees increased by 37 percent versus the same period in 2022, driven by higher toll revenues in the SCTEx.

Philippine National Construction

Corp. fee, on the other hand, amounted to P519 million, which consists of the government share in NLEX revenues.

NLEx spans about 105 kilometers and is the main infrastructure backbone that connects Metro Manila to Central and Northern Luzon while the SCTEx is a 93.77km four-lane divided highway, traversing the provinces of Bataan, Pampanga and Tarlac.