NPC ended 2015 with P2.9-B net income

by Lenie Lectura - April 29, 2016
http://www.businessmirror.com.ph/npc-ended-2015-with-p2-9-b-net-income/

THE National Power Corp. (NPC) posted a net income of P2.903 billion in 2015, the highest financial turnaround since 2012, the state-owned power company’s president said.

“Our 2015 profit was P2.903 billion, net of government subsidy, and revenue was at P11.755 billion,” NPC President Gladys Cruz-Sta. Rita told the BusinessMirror in an interview. For the past four years NPC’s income has grown steadily. In 2012 it posted P397 million; P505 million in 2013; and P1.5 billion in 2014.

In 2011 NPC posted a net loss of P18.87 million. Its net loss in 2009 stood at P2.87 billion and P2.78 billion in 2010.

Sta. Rita attributed the state firm’s rosy financial standing last year to improved collection efficiency from electric cooperatives. The NPC achieved several corporate successes with better collection efficiency, from 85 percent to 98.47 percent in Luzon, the Visayas and Eastern Mindanao last year.

“Our collection efficiency is at 98.4 percent. This was 85 percent in 2012, before I came in. Reduction in fuel cost also helped,” Sta. Rita said.

Collection efficiency in 2014 stood at 96 percent and 85 percent in 2013.

Earlier, Standard & Poor’s Ratings Services (S&P) maintained its credit rating on NPC. The state-run agency enjoys a “BBB” rating on long-term local and foreign-currency ratings and “axA” Asean scale rating with a stable outlook from S&P.

The rating reflects the country’s present rating, a notch above the minimum investment grade, over the next two years.

“We have therefore equalized the ratings on the government-owned electricity provider with those on the sovereign rating,” S&P said.

The assessment covered NPC’s “critical” role as the sole provider of electricity to off-grid areas, also known as missionary areas.

“NPC is specifically tasked to undertake missionary electrification, which we view as a key social policy initiative of the government,” S&P said. Prior to the passage of Republic Act 9136, or the Electric Power Industry Reform Act (Epira) of 2001, NPC used to hold the monopoly over power generation and transmission. Now, the state firm is mandated to privatize its power assets and is now responsible for providing electricity to areas not connected to the grid.

NPC has been recently conferred with an International Organization for Standardization (ISO) 9001:2008 certification, which covers all of its operations from head office down to its power plants, dams and watershed systems throughout the country.

Sta. Rita said the certification serves as a seal of approval for all the hard work, innovation and perseverance of the NPC.

“We are committed to improve and modernize our management system and processes in order to respond to the changing needs of the communities we serve,” the NPC official said.

In previous years, NPC had also received individual ISO certifications, such as the Small Power Utilities Group Luzon, Visayas, and Mindanao Operations Department, Mingen’s Pulangi hydroelectric power plant, and Mingen’s hydro-plant complex.