Business World Online
Posted on May 06, 2011 06:37:59 PM
MANILA ELECTRIC, Co. (Meralco) posted a 6% profit hike for the first quarter over yearago levels after charging consumers higher electricity rates during that period, the power distributor said in a disclosure to the local bourse on Friday.
Net income hit P2.1 billion for January to March versus P2 billion in the same period last year, Meralco said.
Consolidated core net income meanwhile grew by 64% to P3.2 billion in the first quarter from P1.98 billion.
"The higher net income is due to the effect of the much delayed implementation of rate adjustments for the third and fourth regulatory years of the 2nd Regulatory Period and lower costs and expenses," the company said.
The latest adjustment in which Meralco charged an additional P0.155/kWh took effect in January. This was on top of the the P1.49 per kilowatt that was added to power bills in April.
The price hike offset a decline in sales volumes, Meralco said.
Meralco sold 6,991 gigawatts (GWh) from January to March from 6,996 GWh the year previous.
Sales of the company to the industrial sector declined "as a result of the slowdown in merchandise export, the main driver of energy sales in 2010."
Cooler temperatures in the first quarter also lessened power demand, Meralco said.
Consolidated revenues from both electricity and non-electricity segments fell 6% to P57.3 billion in the first quarter from P61 billion in the same period last year, Meralco said.
"While we did not fully anticipate the extent of the effect on energy sales of the unusually cooler temperature in the first quarter of 2011 and the slowdown in the economy, we continue to deliver on our commitment to aggressively pursue our strategy towards faster energization of customers, continuous improvement in our network efficiency and driving system loss to an all-time low," Meralco Chief Operating Officer Oscar S. Reyes said in the statement.
"Simultaneously we are enhancing profitability through more efficient use of capital and containing financial charges to record low levels," Mr. Reyes said.
The company said its future plans are to prepare for the open access regime and to proceed with its own power generation plans.
Shares of Meralco closed yesterday’s trading at P236, down 1.58% from its previous close of P240 a piece.
Meralco is controlled by the Philippine Long Distance Telephone Co. (PLDT) and Metro Pacific Investments Corp. Mediaquest Holdings, Inc., a subsidiary of PLDT’s Beneficial Trust Fund, has a minority stake in BusinessWorld. --Emilia Narni J. David
Consolidated core net income meanwhile grew by 64% to P3.2 billion in the first quarter from P1.98 billion.
"The higher net income is due to the effect of the much delayed implementation of rate adjustments for the third and fourth regulatory years of the 2nd Regulatory Period and lower costs and expenses," the company said.
The latest adjustment in which Meralco charged an additional P0.155/kWh took effect in January. This was on top of the the P1.49 per kilowatt that was added to power bills in April.
The price hike offset a decline in sales volumes, Meralco said.
Meralco sold 6,991 gigawatts (GWh) from January to March from 6,996 GWh the year previous.
Sales of the company to the industrial sector declined "as a result of the slowdown in merchandise export, the main driver of energy sales in 2010."
Cooler temperatures in the first quarter also lessened power demand, Meralco said.
Consolidated revenues from both electricity and non-electricity segments fell 6% to P57.3 billion in the first quarter from P61 billion in the same period last year, Meralco said.
"While we did not fully anticipate the extent of the effect on energy sales of the unusually cooler temperature in the first quarter of 2011 and the slowdown in the economy, we continue to deliver on our commitment to aggressively pursue our strategy towards faster energization of customers, continuous improvement in our network efficiency and driving system loss to an all-time low," Meralco Chief Operating Officer Oscar S. Reyes said in the statement.
"Simultaneously we are enhancing profitability through more efficient use of capital and containing financial charges to record low levels," Mr. Reyes said.
The company said its future plans are to prepare for the open access regime and to proceed with its own power generation plans.
Shares of Meralco closed yesterday’s trading at P236, down 1.58% from its previous close of P240 a piece.
Meralco is controlled by the Philippine Long Distance Telephone Co. (PLDT) and Metro Pacific Investments Corp. Mediaquest Holdings, Inc., a subsidiary of PLDT’s Beneficial Trust Fund, has a minority stake in BusinessWorld. --Emilia Narni J. David
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