Meralco posts P11.7B net income in H1
MANILA, Philippines – The Manila Electric Company (Meralco) reported a net income of P11.7 billion ($257.09 million) for the first half of 2015, as it sets its sights on a core profit of P18.5 billion ($406.55 million) for the year.
Meralco customers at end-June stood at 5.68 million. Total capital expenditures (capex) for the first 6 months amounted to P5.8 billion ($127.56 million).
Challenges in H2
While it set its profit at P18.5 billion, as buoyed by an all-time high sales growth and customer base expansion to 5.683 million subscribers in the first half of 2015, Pangilinan, howeve,r said the remaining of the year poses leaner financial income for Meralco.
Challenges in the second half of 2015 include a reduced distribution tariff from the last implemented rate in the third regulatory period of P1.5562 ($0.034) per kilowatt hour (kWh) to an interim average of P1.3810 ($0.03) per kWh; scheduled plant maintenance shutdown; and higher expenses for project development costs of its subsidiaries.
Pangilinan added that the approved interim rate will have a P2.2-billion ($48.38 million) effect on Meralco’s bottomline.
Thus, Pangilinan said Meralco needs to be ahead of the curve by anticipating its customers’ needs.
"We'll continue to invest heavily. Capital expenditures for smartgrid, prepaid electricity, e-vehicles, distributed generation, and renewables will increasingly feature in our investment program," said Meralco president Oscar Reyes.
Meralco's board of directors also approved the declaration of cash dividend of P6.76 ($0.15) a share.
On top of the regular dividend representing 50% of the 2015 interim earnings, Meralco is paying an additional 10% special dividend out of the 2014 consolidated core ent earnings, bringing payout for 2014 to 90%. – Rappler.com
$1 = P45.49