February 25, 2020 | 12:07 am
MANILA
Electric Co. (Meralco) reported a 6.3% growth in 2019 core net income to P23.83
billion as the power distribution utility recorded strong energy sales with the
steady electricity usage by customers in online casinos and business
outsourcing firms.
“Electricity revenues
amounting to P310 billion was stable at 97% of gross revenues compared with
P295.4 billion in 2018,” said Betty C. Siy-Yap, Meralco senior vice-president
and chief finance officer, in a briefing on Monday to present the company’s
operating and financial results last year.
“Aggregate distribution
revenues grew by 6% in 2019 to P65.9 billion versus 2018, reflecting the impact
of higher volume distributed and the sales mix,” she said.
Excluding one-off items, reported net income rose 1.2% to P23.29 billion. The
figure was adjusted to exclude the effect of foreign exchange gains or losses,
impairment charges, mark-to-market adjustments and other exceptional
transactions.
In the fourth quarter
alone, core net income rose by 5.9% to P5.38 billion, while reported income
increased by 3.1% to P4.96 billion.
Last year’s income
comes as the listed utility recorded a 5.8% rise in energy sales to 46,871
gigawatt-hours (GWh). The year’s growth rate was the highest in the past three
years.
During the year,
residential customers registered the biggest growth rate in terms of
consumption at 7.6%, or faster than those of the two other customers segments
commercial and industrial, which recorded growth rates of 5.8% and 3.8%,
respectively.
Still, commercial
customers made up the biggest share of Meralco’s customer base with a share of
39.4%. Residential comprised 31.1% while industrial accounted for 29.3%.
“POGO (Philippine
offshore gaming operators) and BPO (business process outsourcing) is creating a
new breed of condominium dwellers,” said Victor S. Genuino, Meralco first
vice-president, during the briefing.
Mr. Genuino, who is
also head of customer retail services and corporate communications, said a
growing customer base outside Metro Manila is also contributing to the growth.
Meralco ended the year with a customer count of 6.883 million, up 41% from
6.615 million in 2018. Again, residential users recorded the biggest growth
rate at 4.2% to 6.339 million to make up 92.1% of the utility’s customer count.
“Maraming
residential units na tini-turnover na (Many residential units are
being turned over). That’s also part of the growth drivers. Buoyant kasi
‘yung real property sector (The real property sector is buoyant), not just
for POGO, which is on the commercial side but also on the residential side. The
more residential units are turned over and occupied then that contributes to
the energy sales,” said Ray C. Espinosa, Meralco president and chief executive
officer.
Asked whether this
year’s residential sales growth could duplicate last year’s, he said: “If you
look at the schedule of the property developers in terms of development
completion and turnover, puwede (possible).”
He said power
consumption by the industrial sector would be down as it is affected by “supply
chain issues created by the coronavirus in China.”
Meralco Chairman Manuel
V. Pangilinan, who was not present during the briefing, said in a statement
that initial operating results in January 2020 and indicative for February “are
positive.”
“We will continue to
execute our investments with significant ambition in power generation, and
other strategic high growth areas amidst the challenges,” he said.
Among the highlights
last year is the commercial operation during the fourth quarter of the P56.2-billion
San Buenaventura Power Ltd. Co. (SBPL), the country’s first supercritical
coal-fired power plant, which now provides additional supply to the Luzon grid.
Rogelio L. Singson,
president and chief executive officer of Meralco PowerGen Corp. (MGen), said
the plant was able to deliver 852 GWh to distribution company.
“As of today we are running at full capacity at net 455 MW,” he said, adding
that the plant contributed P300 million to Meralco’s bottomline last year.
On Monday, shares in
Meralco slipped by 2.96% to close at P262 each.
Meralco’s controlling
stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary
MediaQuest Holdings, Inc., has interest in BusinessWorld through the
Philippine Star Group, which it controls. — Victor V. Saulon
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