Meralco banking on improved performances by subsidiaries

By Lenie Lectura -December 16, 2019
from Business Mirror

THE Manila Electric Co. (Meralco) expects its subsidiaries to perform better, following their positive contribution to the utility firm’s bottomline in the past three quarters of the year.

“We are on the lookout for more opportunities for these subsidiaries as they continue to pour in resources to better our customers,” said Meralco President Ray C. Espinosa.

Some of Meralco’s subsidiaries and affiliates are Meralco Industrial Engineering Services Corp. Group, CIS Bayad Center Inc. (Bayad Center) Group, Meralco Energy Inc., Radius Telecoms Inc. (Radius), MSpectrum Inc. (Spectrum), mrail Inc., Meralco Powergen Corp. (MGen) Group, eSakay Inc., Comstech Integration Alliance Inc., Clark Electric Distribution Corp. (CEDC) and Shin Clark Power Group.

He cited “meaningful contributions” from CEDC, as well as from Bayad Center and Radius, which all provided an “uplift” to the Meralco bottomline.

CEDC, Meralco’s 65-percent owned subsidiary, posted growth of 11 percent, 10  percent and another 10 percent in sales volume, net systems input and peak demand, respectively, at end-September this year.

The additional sales volume came from new hotels within the zone, as well as higher volumes from its existing locators.

Meralco expects demand within the New Clark City in Capas, Tarlac, to grow over 5,000 kilowatt this year.

Meanwhile, Radius and Bayad Center mainly contributed P566.4 million to Meralco’s consolidated core net income at end-September this year.

Radius delivers end-to-end fiber optic solutions, while Bayad Center is a multiplatform payment channel.

Espinosa also cited Spectrum’s installed rooftop solar facilities totaling 14.3 megawatts; while eSakay has part of its portfolio a 10-km development route from Mandaluyong City Hall to the MRT Buendia station.

“The core distribution business, which continues to drive the growth of Meralco, shall be supported by the contribution from MGen’s San Buenaventura Power Ltd. beginning September 26, 2019,  when it declared commercial operations,” added Espinosa.

Meralco posted a core net  income of P18.5 billion from January to September this year, 11 percent higher than in the same period a year ago. Reported net income stood flat P18.3 billion in the same period.