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Streamlining processes implemented by the country’s
largest electric utility has resulted in improvements in
its first-quarter revenues.
For the
first quarter, total expenses reported by Manila
Electric Co. (Meralco) dropped by 9.8 percent to P42.76
billion from P47.4 billion the previous year, as power
purchase cost also dropped by 11.2 percent to P37.95,
while unrecoverable purchased power cost dropped by 24.2
percent from P648 million to P491 million. This has
increased Meralco’s net income by 23.2 percent to P655
million from P532 million in the same period last year.
In a
disclosure to the Philippine Stock Exchange, Meralco
also disclosed that energy sales continued to register a
positive growth increasing by 1.9 percent to 6,156
gigawatt-hours (GWh)—although this was lower than last
year’s 3.7-percent expansion.
Meralco
said its total revenues in the first three months
amounted to P43.64 billion compared to last year’s P48.2
billion, a 9.5-percent decrease owing to the lower
average generation and system loss charges for the
period compared to last year.
The
company also noted that its distribution revenues
increased by 2.7 percent to P5.8 billion in
first-quarter 2008 from P5.65 billion in the same period
last.
The
commercial segment led energy sales growth, increasing
4.1 percent to 2,388 GWh —largely propelled by growth in
electricity use in the transport, storage and
communication, real estate and trade sectors.
Meralco
said the addition of 12 new commercial customers to the
grid with a combined demand of 8.7 megawatts (MW) also
contributed to this increase.
Sales to
the industrial segment grew to 1,795 GWh from the
beverage, transport equipment and basic
metal-manufacturing sectors. The addition of 14 new
major industrial customers with a combined demand of
10.4 MW also helped increase this segment’s consumption.
Meralco
added that the residential segment, however, slightly
contracted 0.6-percent to 1,938-GWh in the first quarter
of the year compared to the 0.7 percent growth in the
same period last year due to because the Holy Week fell
in March this year compared to April in 2007. This
period had lower temperature compared with the previous
year.
At the
same time, Meralco also reported that its net income
last year dropped 73 percent to P3.61 billion in 2007
from P13.38 billion in 2006.
Meralco
attributed the decrease to provisions made for probable
losses amounting to P15.73 billion in 2006; net income
for that year would have been P3.16 billion. As a
result, net income for 2007 would have been 14.2-percent
higher.
The
Lopez-owned company explained that the provision for
probable losses was for a pending case questioning a
rate increase approved by the Energy Regulatory
Commission (ERC) and implemented by the company in June
2003.
The case
was resolved by the Supreme Court in December 2006 in
favor of ERC and Meralco.
In 2007,
Meralco said it sold 26,219 GWh, a 4.6-percent increase
over the same period a year ago. This increase in energy
sales pushed its revenues to P195.61 billion last year
from P186.08 billion in 2006.
The
utility company added that distribution revenues also
increased to P25.46 billion, up 9.2 percent from P23.31
billion in 2006. |
