For the first half of this year, analysts predict consistent earnings for listed energy firms in the country.
In a report by the Business World, China Bank Securities Corporation Research Associate Andrei Soriano said that power companies should anticipate moderate year-on-year energy sales growth to overall top-line growth.
This shift is explained by the continuous improvement in power supply circumstances, which is causing the limitations on power generation to lessen.
Soriano cleared that it is still the companies’ expansion of capacity and profit enhancement that would be the driving force for the increase.
With the country continuously increasing its share of renewable energy (RE), registered energy companies recorded varying results. Some companies that experienced income increases quoted strong revenues and increased demand as deciding factors.
The Manila Electric Company (MERALCO) reported a 58% surge in net income last year, driven by increased electricity sales. For the nine months ending in September, the power distributor’s attributable net income reached Php 2.33 billion.
However, Aboitiz Power Corporation reported a 7% decrease in its consolidated net income due to the firm’s schedule for reimbursements following the mandate of the Energy Regulatory Commission on rate adjustments.
Analysts noted that given the anticipated increase, energy companies should also account for outside variables that can have an impact on their performance and operations.
