Business World Online
Posted on July 29, 2013 10:19:27 PM
DISTRIBUTION UTILITY Manila Electric Co. (Meralco) saw its net income slip in the first half mainly due to the absence of a one-time gain like the one from divestment of its stake in Rockwell Land Corp. the previous year, according to unaudited consolidated financial highlights attached to the company’s disclosure yesterday.
Net income fell 3.2% to P9.441 billion in the first half from P9.752 billion in the same six months last year, while core net income -- which strips out one-time gains or losses -- edged up 1.7% to P9.174 billion from P9.023 billion.
“The reported net income remains strong, but slightly lower because we recognized a gain from divestment of Rockwell Land shares, which is more than P770 million without tax,” Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, told reporters in a briefing at the company’s headquarters in Pasig City yesterday.
In the same comparative six-month periods, revenues sank 1.3% to P141.697 billion from P143.6 billion. Revenues from electricity sales slid 1.9% to P139.7 billion from P142.464 billion, while non-electricity revenues jumped 75.8% to P1.997 billion from P1.136 billion. Meralco, in a statement attached to its disclosure, said: “lower total revenue was the result of lower generation cost from power sales agreements… despite higher volume of power sold and average distribution rate.”
Costs and expenses fell 3.5% to P128.961 billion from P133.603 billion, also mainly due to lower cost of purchased power.
“We had relatively favorable results in the first half driven by good sale performance, especially strong sales during the second quarter of 2013,” Meralco President Oscar S. Reyes said in the same briefing.
“This resulted in roughly 4% growth in sales volume compared to sales level in the first half of 2012,” he added, referring to 16,863 gigawatt-hours sold in the first half.
Meralco’s shares gained 40 centavos or 0.14% to close at P291.20 apiece yesterday. --C. A. M. C. Feliciano source
“The reported net income remains strong, but slightly lower because we recognized a gain from divestment of Rockwell Land shares, which is more than P770 million without tax,” Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, told reporters in a briefing at the company’s headquarters in Pasig City yesterday.
In the same comparative six-month periods, revenues sank 1.3% to P141.697 billion from P143.6 billion. Revenues from electricity sales slid 1.9% to P139.7 billion from P142.464 billion, while non-electricity revenues jumped 75.8% to P1.997 billion from P1.136 billion. Meralco, in a statement attached to its disclosure, said: “lower total revenue was the result of lower generation cost from power sales agreements… despite higher volume of power sold and average distribution rate.”
Costs and expenses fell 3.5% to P128.961 billion from P133.603 billion, also mainly due to lower cost of purchased power.
“We had relatively favorable results in the first half driven by good sale performance, especially strong sales during the second quarter of 2013,” Meralco President Oscar S. Reyes said in the same briefing.
“This resulted in roughly 4% growth in sales volume compared to sales level in the first half of 2012,” he added, referring to 16,863 gigawatt-hours sold in the first half.
Meralco’s shares gained 40 centavos or 0.14% to close at P291.20 apiece yesterday. --C. A. M. C. Feliciano source
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