MERALCO’s 9-month net income drops 39%

shutterstock_615837341

The Manila Electric Company (MERALCO) reported a 38.6% decline in its net income in the first three quarters of 2020 compared to the same period last year.

In a disclosure to the Philippine Stock Exchange, MERALCO said it only earned Php11.3 billion from January 1 to September 30, 2020 as against Php18.3 billion year-on-year.

The decline was mainly due to the company’s share in impairment of its investment in Singapore-based PacificLight Power Pte Ltd. worth Php2.7 billion in the first quarter of the year.

Consolidated core net income also went down by 14.8% to Php15.7 billion in the first nine months of 2020 from Php18.5 billion in the same period in 2019.

Despite the drop, MERALCO Chairman Manny V. Pangilinan remains optimistic of its fiscal position.

“We are confident that we will surpass the [Php21] billion Consolidated [core net income] guidance for 2020 provided in the first half of this year and be able to meet our committed return to shareholders,” Pangilinan said in a statement.