Meralco posts core net income of P19.6 B, up 4%

Published February 27, 2017, 10:00 PM By Myrna M. Velasco

http://business.mb.com.ph/2017/02/27/meralco-posts-core-net-income-of-p19-6-b-up-4/

Generally buoyed by strong sales on account of warmer temperature and demand growth, the core net income of Manila Electric Company (Meralco) in 2016 had been up 4.0-percent to P19.583 billion from year-ago level of P18.887 billion .

The utility firm’s reported net income had also been “marginally higher” at P19.176 billion from P19.098 billion in 2015. For fourth quarter 2016, core income was at P4.6 billion from the comparative quarter of 2015 at P3.10 billion, noting that there was a “dip” that time because the Supreme Court decision on real property taxes (RPT) came out and there had been items that they had included in the approvals.

Additionally, core income for 2016 had been at P3.4 billion; from the comparative year-ago level of P2.9 billion. According to Meralco Senior Vice President Betty Siy-Yap, vigorous financial result was achieved overall last year despite slight 0.5-percent downslide in revenues to P257.2 billion from P258.4 billion in 2015 due to the continued decline in the cost of pass-through fuel on power supply.

Meralco Chairman Manuel V. Pangilinan noted that while he is pleased with the performance of the utility firm management relating to profitability, they will defer giving out core income guidance until the announcement of first quarter results or until May this year.

He said “the country’s impressive GDP (gross domestic product) growth of 6.8-percent, continued low inflation during the year and the company’s operational excellence underpinned Meralco’s strong financial results and consequently enabled good returns to its shareholders.”

Pangilinan said they are eyeing exceptionally positive upturn in financial outcome again with the targeted commercial operations of their power generating assets starting 2019 – with the anticipated commercial commissioning of the 455-megawatt San Buenaventura coal-fired power project.

Siy-Yap said the company declared final cash dividend of P9.30 per share, including a special dividend of P5.22 per share.  Total dividend payout had been set at P13.91 per share out of 80-percent of the company’s consolidated core net income.

Company President Oscar S. Reyes said the higher income was underpinned by “the combined effect of the much warmer weather during the first five (5) months of 2016 and the strong growth of the domestic economy.”