Manila Electric Co. (Meralco) noted a raise in profit for the first half of the year due to continuous increase in energy volume and customer count during the period.
Meralco CFO Betty Siy-Yap announced the company’s core net income amounted to P10.85 billion in the January to June period this year. 7 percent higher from the P10.12 billion in the same period last year.
Total net earnings amounted to P11.97 billion, which is 14 percent higher than last year’s P10.5 billion.
The electric company’s collected revenues increased by seven percent from P 141 billion to P 150.5 billion urged by the “increase volume of energy sold and increase in generation charge, weakening of peso, higher WESM (wholesale electricity spot market) prices.”
Meralco’s sales volume increased by 6.5 percent to 21,655 gigawatt-hours (GWh).
Reyes said Meralco’s customers continue to grow at a positive pace at 4.8 percent to 6.5 million by end-June, mainly driven by new customers in the residential segment.
“In the distribution side, our promise has been for us in Meralco to deliver excellent customer service and operational excellence in fulfilling our franchise mandate to our 6.5 million customers in terms of 24/7 power with the necessary customer products and services and that has helped drive as well our sales and financial results,” Reyes said.
Meralco Chairman Manuel V. Pangilinan refused to give out a profit goal but said he expects “a better 2018.”
“The economy continues to expand boosted by strong consumer spending and the growth in the service industry, and even the industrial sectors. The ramping up of Government infrastructure projects is expected to further lift the country’s growth prospects. These, therefore, serve as imperatives for us to build a robust electricity distribution system along with highly cost-competitive, reliable and environmentally-sound power plant,” he said.
Meralco PowerGen Corp. (MGen) is set to commission the 455-megawatt (MW) San Buenaventura power in the third quarter of 2019.
Officials are continuously monitoring economic headwinds that could have potential effect on its performance.
“However, economic headwinds from higher fuel and commodity prices, higher exchange and interest rates, and inflation remind us to remain vigilant and cautious about our own growth targets, investments and spending,” Pangilinan said.
Other headwinds also include frictions in the global cooperation investment and trade environments,” Reyes said.
“We are taking the necessary steps to safeguard against any negative spillover effects on our 6.5 million distribution utility (“DU”) customers through sustained operational excellence in assuring 24×7 electricity service, faster energization of new customers, least cost energy sourcing and dispatching, and similar initiatives,” he said.