Wednesday, October 31, 2018

Meralco core profit up 11% in Q3


By Victor V. Saulon, Sub-editor

MANILA Electric Co. (Meralco) reported a core net income of P5.84 billion in the third quarter, up 11.2% year-on-year, but lower than the second quarter as revenues slowed in part because of the cooler temperature.
Reported net income, which includes one-off items, reached P6.24 billion during the third quarter, higher by nearly 15% from P5.43 billion a year ago.
“It’s looking good, I mean based on the nine-months results,” said Meralco Chairman Manuel V. Pangilinan during the distribution utility’s quarterly media briefing to present its operating and financial results. “I think the full year [will be] another historic number for Meralco.”
In the nine months to September, Meralco reported a core net income of P16.69 billion, higher by 8.6% from P15.37 billion a year ago. Reported profit rose 14.3% to P18.21 billion from P15.93 billion previously.
Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, said consolidated gross revenues reached P227.41 billion, or 6% higher compared with the previous year’s P214.39 billion.
“Electric revenues amounted to P221.3 billion, higher by 6% over the comparative period [in 2017] due to significantly higher generation charges resulting from the combined effects of increased prices of coal, oil and gas, and the further weakening of the Philippine peso versus the US dollar,” she said.
Ms. Siy-Yap added that non-electric revenues was at P6.1 billion, up 11% compared with the level a year ago, and represents about 3% of the total consolidated revenues for the period.
Among customer classes, industrial consumers recorded the biggest growth in terms of energy sales at 7.3% followed by commercial at 4.5% and residential at 3%.
Oscar S. Reyes, Meralco president and chief executive officer, said as of the third quarter the company recorded a customer base of 6.542 million, an increase of 4.7% from 6.252 million a year earlier.
“We are seeing continued healthy growth in our customer count,” he said.
In terms of customer count, residential consumers recorded the biggest growth of 4.8%, followed by commercial with 2.8%, and industrial at 2%.
Residential customers at 6.017 million, accounted for 92% of Meralco’s client base.
Mr. Reyes said sales volumes, net system input and peak demand within the Meralco franchise area grew by 5%, 4% and 6%, respectively.
Sales volume reached 32,921 gigawatt-hours (GWh), net system input was at 34,815 GWh, while peak demand hit 7,399 megawatts (MW) registered on May 23, 2018, which compares with Luzon’s peak demand of 10,876 MW recorded on May 28, 2018.
In a statement issued during the briefing, Mr. Pangilinan was quoted as saying: “The major driver of growth for Meralco continues to be our core distribution business, with volumes from real estate-related businesses, including the Philippine Online Gaming Operators [or POGO], having provided the uplift for the Commercial sector.”
He noted the third quarter, “which historically generated the strongest volumes in any operating year, managed to remain relatively good, albeit affected by adverse macroeconomic factors and weather disturbances.”
On Monday, shares in slipped 0.11% to close at P360 each.

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