Tuesday, June 28, 2016

Meralco expects ’16 sales volume to expand 7%



posted June 26, 2016 at 11:25 pm by  Alena Mae S. Flores

Manila Electric Co., the biggest electricity retailer, forecasts full-year sales volume growth at 6 percent to 7 percent this year, the same level as last year’s.
Meralco chairman Manuel Pangilinan said power demand rose significantly in May before dropping slightly in June.
“As for demand in the past six months, May was way up there. In June, it has dropped a bit because [of] cooler temperature,” Pangilinan said.
He said full-year sales volume growth would likely be in the “high single digit similar to 6 percent to 7 percent growth last year.”
Meralco officials attributed the high sales volume growth in 2015 to warmer temperatures, low inflation and electricity rates and healthy gross domestic product growth spurred by remittances from migrant Filipino workers and business process outsourcing revenues.
Meralco senior vice president and head of customer retail services and corporate communications Al Panlilio said Meralco posted sales of 3,561 gigawatthours in May, 10.7 percent higher year-on-year, while year-to-date sales increased 12.4 percent.
He said June sales were estimated to have increased slower by 5.5 percent, they were still the highest month the whole year in terms of Gwh.
Panlilio earlier said the onset of the rainy season would impact on the company’s sales. Other factors could still provide positive influence on sales volume growth, he added.
He said the Philippine economy was growing, noting the strong expansion in the commercial and industrial sectors.
“For commercial, there are new hotels coming up, new cement plant of Eagle Cement that has been put into stream. There are new businesses coming up. Tiger Resorts is coming in the last quarter,” Panlilio said.
“There are a lot of new customers coming in, big and small, that might still push growth. Temperature will definitely impact... especially with residential point of view,” he said.
Meralco president and chief executive Oscar Reyes ealrier cited other drivers, such as the country’s “very good economic conditions, positive consumer and bisiness confidence, low inflation, low interest rates and businesses have more money in pockets.”
Meralco posted a consolidated reported net income of P4.54 billion in the first quarter, up 3 percent from P4.42 billion on year.
Core net income increased 4 percent during the period to P4.6 billion from P4.41 billion in 2015.
Reported net income is adjusted to exclude the effect of foreign exchange gains or losses, mark-to-market adjustments and other one-time, exceptional transactions.
“The sustained upward momentum of the Philippine economy, coupled with very warm temperatures throughout the quarter contributed to driving electricity usage to higher trajectory providing growth opportunities for electricity demand across all industry sectors,” Pangilinan said earlier.

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