By Lenie Lectura - August 3, 2017
THE Manila Electric Co. (Meralco) posted
lower profits in the first six months of the year, despite an increase in
revenues during the period.
The utility firm’s core profit
reached P10.1 billion, 3-percent lower than the P10.4 billion Meralco posted in
the same period a year ago. Reported net income at end-June this year was also
lower at P10.5 billion, a reduction of 2 percent from January-to-June 2016
figures.
Revenues, however, stood 9-percent
higher at P141 billion, compared with P128.8 billion in the same period in
2016.
The higher revenues are the result
of the combined effects of several factors, Meralco said. The company cited
there was a 3-percent increase in volume of energy sold and an increased
generation charge related to the 20-day maintenance shutdown of the Malampaya
gas facilities—which required the use of higher cost liquid condensate for the
Santa Rita and San Lorenzo plants and biodiesel for the derated Ilijan
plant—and the extended maintenance outages of certain coal-fired power plants.
Meralco said the depreciation of the peso against the greenback also
contributed to revenue increase.
However, company revenues were
partly offset by the effect of lower global prices of coal and oil, lower top
line contribution from nonelectric subsidiaries and lower overall retail revenues
of Meralco’s retail electricity supply (RES) unit MPower and affiliate RES unit
Vantage Energy Solutions and Management Inc.
Meralco Chief Finance Officer Betty
Siy-Yap said core profit in the second quarter slightly dipped to P5.5 billion,
from P5.8 billion a year ago.
“One of the reasons was the
contribution of Meralco subsidiaries because of a delay in the award of some of
the project,” Yap explained. “With respect to retail income, competition has
been more intense and prices have come down.”
Meralco Chairman Manuel V.
Pangilinan did not provide an outlook for the company’s full-year performance.
However, Pangilinan said it is
possible that Meralco can duplicate its first-half earnings in the second-half
period.
“It is best, perhaps, to give an
outlook closer to the third quarter. We will be in a better position to
indicate by then,” he said during a news conference. “It is, however, entirely
possible to duplicate the first-half numbers in the second half.”
Pangilinan said the sustained growth
and sound fundamentals of the Philippine economy, healthy domestic and foreign
investor confidence and strong consumer demand have provided the underpinnings
for further electricity sales volume growth in the first half of 2017.
Electricity sales volume grew by 3
percent year-on-year to 20,338 gigawatt hour (GWh) to 20,338 GWh, despite the
high-base effect of the same period in 2016, where volume surged by 11 percent
to 19,717 GWh. System peak demand was up 3 percent at 6,973 MW recorded in June
14, over 6,748 MW on May 4, 2016. Commercial sales volumes were at 8,045 GWh,
about 4 percent higher than in 2016, accounting for 40 percent of the total
energy sold. Industrial sales volumes grew by 3 percent to 5,892 GWh
year-on-year, accounting for 29 percent of the total GWh sales.
Residential sales volume also went up by 3 percent to 6,333 GWh due
largely to the growth of Meralco’s customer base which stood at 6.2 million at
end-June this year.
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