Meralco optimistic even as it reported lower earnings in H1

by Lenie LecturaAugust 21, 2016

from Business Mirror

THE Manila Electric Co. (Meralco) remains upbeat on the power sector under the Duterte administration, even as it recently reported lower earnings in the first half of the year.

“Innovation and technological transformations, increased productivity, international quality product and service offerings and resilient brick-and-mortar business remain high in the business agenda of Meralco and its subsidiaries,” said Meralco Chairman Manuel V. Pangilian.

Pangilinan said the company is bullish on the country’s growth, which is expected to be sustained by the required infrastructure and support facilities development.

“The new government’s indicative openness to unsolicited offers for major projects is very encouraging,” he said.

The utility firm’s second-quarter net income declined to P5.271 billion, from P7.326 billion, dragging its first-half performance to P10.768 billion, from P11.747 billion.

Core profit in the second quarter was also down to P5.298 billion, from P7.225 billion in the same period last year. From January to June this year, Meralco’s core income dropped by 10.8 percent to P10.388 billion, from P11.747 billion.

Total energy sales for the first semester grew 11 percent year-on-year to 19,717 gigawatt-hours, with the highest single month consolidated sales volume recorded in June.

The warmer temperature, increase in number of customers, record-low inflation and low electricity prices contributed to the record sales performance.

For the second half of the year, Pangilinan said Meralco is anticipating a single-digit volume growth. This expectation will also lead to a full-year volume growth at about “8 percent to 10 percent, absent destructive weather disturbances.”

“Considering the impact of the interim rate implemented since July 2015, we guide our full-year results to be around P19 billion,” Pangilinan said earlier.

The Energy Regulatory Commission ordered Meralco last year to implement a lower distribution rate of P1.39 per kilowatt hour.