Meralco Q1 earnings up 19% despite revenue dip

MANILA, Philippines – Earnings of Manila Electric Co. (Meralco) rose 19.3% in the first quarter of 2013 from the year before as lower expenses offset a slight dip in its revenues.

In a financial report filed with the Philippine Stock Exchange, the country’s biggest power distributor said it recorded a net income of P4.024 billion in January to March 2013, against P3.373 billion in the same months of 2012.

Minus extraordinary gains and charges, Meralco’s core net income of P4.024 billion was 17.7% higher than its P3.418 billion core net income last year.

Total revenues fell 1.2% to P64.820 billion from P65.626 billion in the first quarter of 2012. Electricity revenues alone went down 1.5% to P64.161 billion from P65.119 billion as Meralco’s average retail rate declined 0.3% to P9.32 per kilowatt-hour.

“The lower electric revenues were largely due to the effect of lower pass-through charges,” it said.

Lower electricity revenues were offset by the 1% increase in energy sales volume to 7,777 gigawatt-hour on the back of new customer accounts, more property developments and increased domestic consumption.

Cost and expenses also went down 3% to P59.147 billion from P60.998 billion. -