MERALCO 1Q net income down 11%

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The Manila Electric Company (MERALCO) reported a 10.7% drop in its consolidated core net income to Php5.72 billion in the first quarter of 2021 from Php5.11 billion in the same period in 2020.

MERALCO registered a four percent decline in energy sales year-on-year, as demand dropped due to the COVID-19 pandemic, coupled with lower foreign exchange rates.

Commercial sales volumes particularly dropped by 40% year-on-year to 3,560 gigawatt-hours (GWh), which currently account for 34% of the power giant’s distribution mix — a far cry from from pre-pandemic levels.

Residential volumes have the highest slice of the pie at 35% with 3,616 GWh for the said period on the back of continued work-from-home and online class arrangements. Industrial volumes, meanwhile, account for the remaining 31% at 3,21 GWh.

Consolidated reported net income went up 66% to Php4.3 billion from Php2.6 billion year-on-year due to “the recognition of the company’s share in impairment of the investment in PacificLight Power Pte Ltd. of [Php2.7 billion] then.” PacificLight is a Singapore-based power firm.

The power giant also said that MERALCO PowerGen Corporation’s (MGen) has completed the acquisition of Global Business Power Corporation (GBP), which was announced last December. MGen is MERALCO’s power generating arm. Metro Pacific Investments Corporation (MPIC) is MERALCO and GBP’s parent firm.

“While 2021 began with hopes for a restart in the economy, the recent surge in the number of infections and its toll on the country’s healthcare system, as well as the delay in the arrival of vaccines, pushes back expectations of an early economic recovery. As such, we continue to revisit and recalibrate our strategies, priorities and plans. [We] re-affirm our commitment to our customers to keep the lights on,” MERALCO and MPIC Chairman Manny V. Pangilinan said in a statement.
“MERALCO’s strong financial position amidst regulatory challenges has allowed it to sustain the much-needed investments for a resilient and reliable networks infrastructure,” he added.

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