Business World Online
Posted on April 22, 2013 10:38:49 PM
DISTRIBUTION UTILITY Manila Electric Co. (Meralco) grew its net income by nearly a fifth annually in the first quarter, buoyed largely by lower costs, according to unaudited consolidated financial highlights attached to the company’s disclosure yesterday.
LINEMEN are seen through foliage at work along United Nations Avenue in Manila in this photo taken last April 1. -- J. L. Cellona
The company’s net income increased by 19.3% to P4.024 billion in January to March from P3.373 billion in the same period in 2012.
Core net income, which excludes one-time charges, rose by a smaller 17.7% to P4.024 billion from P3.418 billion.
Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, said in a text message that core net income in the first quarter of 2012 “excludes charges from foreign exchange and market to market losses, totaling P56 million, net of tax.”
“Overall our reported net income, grew 19% because of continuous growth of energy sales volume complemented by disciplined operating and maintenance expenses,” Ms. Siy-Yap told reporters in a briefing held at Meralco compound in Pasig City.
In the same comparative periods, revenues actually slipped by 1.2% to P64.820 billion from P65.626 billion as the company passed on to its customers lower charges paid to its power providers.
“Overall revenue from sale of electricity was lower year on year as the company began to realize the full-period effect of new power sales agreements, which resulted in lower generation charges to Meralco customers,” Meralco said in a statement attached to its disclosure.
Revenues from electricity sales, which comprise bulk of total revenues, sank by 1.5% to P64.161 billion from P65.119 billion, while non-electricity revenues -- mainly from electricity pole rental, third-party bill payment collection services of CIS Bayad Center, Inc. (Bayad Center), as well as data and connectivity services of eMeralco Ventures, Inc. -- surged by 30% to P659 million from P507 million.
Meralco President Oscar S. Reyes said during the briefing yesterday that “the company saw a modest improvement in energy sales volume.”
“Our energy sales during the period was 7,777 gigawatt-hours, up 1.2% compared to the same period 2012,” Mr. Reyes said.
He added that sales volume in industrial and commercial sectors increased by 2.1% and 1.3%, respectively, while the residential sector sales volume slipped by 0.3%.
The utility said in its statement that number of billed customers “increased to more than 5.2 million with the additional 166,000 customer accounts since March 2012.”
At the same time, costs and expenses fell by a bigger 3% to P59.147 billion from P60.998 billion, due to lower power purchase costs as well as operating and maintenance expenses.
“Labor, labor-related and contracted services remain the largest operating cash costs of Meralco,” the utility explained.
“All other expense items were very well contained.”
Cost of purchased power fell by 3.5% to P51.589 billlion from P53.445 billion, while operation and maintenance costs dropped by 2.2% to P3.941 billion from P4.030 billion.
Asked on the company’s outlook, Meralco Chairman Manuel V. Pangilinan said during the same briefing: “We will provide profit guidance for Meralco once we release our first-half results.”
“In April we see significant growth in power demand at estimated 7.8%.
We’ll see how the coming months, the weather and elections in May will affect the demand before we can give our profit guidance after the first-half performance.”
Meralco’s shares shed 40 centavos or 0.11% to close at P360.60 apiece yesterday from P361.00 each on Friday last week.
Beacon Electric Asset Holdings, Inc., which has the biggest stake in Meralco, is partly owned by Philippine Long Distance Telephone Co (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a minority stake in BusinessWorld. -- C. A. M. C. Feliciano source
Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, said in a text message that core net income in the first quarter of 2012 “excludes charges from foreign exchange and market to market losses, totaling P56 million, net of tax.”
“Overall our reported net income, grew 19% because of continuous growth of energy sales volume complemented by disciplined operating and maintenance expenses,” Ms. Siy-Yap told reporters in a briefing held at Meralco compound in Pasig City.
In the same comparative periods, revenues actually slipped by 1.2% to P64.820 billion from P65.626 billion as the company passed on to its customers lower charges paid to its power providers.
“Overall revenue from sale of electricity was lower year on year as the company began to realize the full-period effect of new power sales agreements, which resulted in lower generation charges to Meralco customers,” Meralco said in a statement attached to its disclosure.
Revenues from electricity sales, which comprise bulk of total revenues, sank by 1.5% to P64.161 billion from P65.119 billion, while non-electricity revenues -- mainly from electricity pole rental, third-party bill payment collection services of CIS Bayad Center, Inc. (Bayad Center), as well as data and connectivity services of eMeralco Ventures, Inc. -- surged by 30% to P659 million from P507 million.
Meralco President Oscar S. Reyes said during the briefing yesterday that “the company saw a modest improvement in energy sales volume.”
“Our energy sales during the period was 7,777 gigawatt-hours, up 1.2% compared to the same period 2012,” Mr. Reyes said.
He added that sales volume in industrial and commercial sectors increased by 2.1% and 1.3%, respectively, while the residential sector sales volume slipped by 0.3%.
The utility said in its statement that number of billed customers “increased to more than 5.2 million with the additional 166,000 customer accounts since March 2012.”
At the same time, costs and expenses fell by a bigger 3% to P59.147 billion from P60.998 billion, due to lower power purchase costs as well as operating and maintenance expenses.
“Labor, labor-related and contracted services remain the largest operating cash costs of Meralco,” the utility explained.
“All other expense items were very well contained.”
Cost of purchased power fell by 3.5% to P51.589 billlion from P53.445 billion, while operation and maintenance costs dropped by 2.2% to P3.941 billion from P4.030 billion.
Asked on the company’s outlook, Meralco Chairman Manuel V. Pangilinan said during the same briefing: “We will provide profit guidance for Meralco once we release our first-half results.”
“In April we see significant growth in power demand at estimated 7.8%.
We’ll see how the coming months, the weather and elections in May will affect the demand before we can give our profit guidance after the first-half performance.”
Meralco’s shares shed 40 centavos or 0.11% to close at P360.60 apiece yesterday from P361.00 each on Friday last week.
Beacon Electric Asset Holdings, Inc., which has the biggest stake in Meralco, is partly owned by Philippine Long Distance Telephone Co (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a minority stake in BusinessWorld. -- C. A. M. C. Feliciano source
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