Meralco posts 10% net growth for Q1 2015

MANILA, Philippines – The Manila Electric Company (Meralco) posted a 10% growth in net income from January to March 2015, the utility firm said Monday, April 27.

Buoyed by higher power sales, Meralco said its net income stood at P4.4 billion ($99.36 million) during the first quarter of the year.

Core profit likewise reached P4.4 billion ($99.36 million), up by 8% from the same period in 2014.

Revenues during the first quarter of 2015 were 14% higher at P62.6 billion ($1.41 billion) compared with P55.1 billion ($1.25 billion) in the same period in 2014.

Meralco’s improved financial performance was largely attributed to the 2.3% increase in electricity volume distributed. The utility firm sold 8,092 gigawatt hours (GWh) during the period.

It was supported by a 4% growth in customer base which stood at 5.63 million as of end-March.

Prevailing concerns

Meralco’s operational expenses grew by 17% to P5.4 billon ($122.09 million) while EBITDA (earnings before interest tax depreciation and amortization) was higher year-on-year by 10% to P8.2 billion ($185.40 million).

Capital expenditure (capex) for the first quarter reached P3 billion ($67.85 million).

Meralo recorded a 4% increase in customer count buoyed by residential, commercial, and industrial sales segments. Residential customers, which account for 91% of its subscriber base, rose by almost 198,000 new accounts. Commercial customer count grew by over 2%.

Meralco President Oscar Reyes said that operational excellence in driving sales volume enabled the company to register improved financial results as in end-March.

The growth in power sales was not adversely affected by any disruption in power supply, specifically the month-long Malampaya maintenance activities, Meralco said.

Meralco Chairman Manuel V Pangilinan said the firm is concerned for May and June because there are scheduled maintenance shutdown of power plants, on top of continuing higher demand and climate change.

Pangilinan added that Meralco faces risks this year amid thinning power reserves, regulatory lags, and potential delay in government approvals.

“Nevertheless, our unwavering commitment to serve stands,” Pangilinan added. – Rappler.com

$1 = P44.21