MANILA, Philippines – Manila Electric Company’s (Meralco) 9-month core net income rose 11% to P18.5 billion, as benign inflation encouraged consumers to use up more electricity.

Meralco said in a disclosure to the Philippine Stock Exchange on Monday, October 28, that slower increases in prices of goods, as well as increased liquidity in the financial system, stable foreign remittances, and growth of the services sector, provided the backdrop for stable sales volume during the period. (READ: Bangko Sentral cuts banks’ reserve requirement anew to support growth)

With the favorable conditions, Meralco chairman Manuel Pangilinan said that the company is set to end 2019 with core earnings of P23 billion.

However, its net income, which takes into account non-electricity earnings, was flat at P18.3 billion compared to 2018.

Electricity revenues stood at P235.4 billion for the 9-month period, 6% higher than last year. 

Consolidated volume of energy sold stood at 35,0005 gigawatt hours (GWh). 

Meanwhile, distribution revenues grew by 7% to P49.2 billion.

By customer class, residential sales volume grew by 8%. Commercial sales grew 6% on the back of more new call centers and online gambling companies.

While the company’s numbers are within the company’s expectations, Meralco chairman Manuel Pangilinan noted new problems that might affect business in the long run. 

“The Meralco of today faces new complexities bearing not only on its core power business but also on climate, water, and environment,” he said. – Rappler.com