THE Manila Electric Co. (Meralco) recorded P4.8 billion in net income for the first quarter of the year, up 6 percent from the same period last year, mainly on account of higher revenues.
Revenues grew by 10.6 percent to P66.6 billion at end-March this year, from P60.1 billion in the same period last year. Core profit from January to March this year stood at P4.6 billion, similar to last year.
Meralco President Oscar Reyes noted a lower growth in energy sales from January to March this year, compared with the same period a year ago “which is quite unique”.
In a report, Meralco’s core profit was largely from contribution of the core-distribution business as sales volume grew to 9,317 gigawatt-hours (GWh) or a growth of only 3 percent over the same comparative period. Oscar said the first quarter of the year saw a cooler temperature. There was also an absence of the February 2016 leap-year effect, which is equivalent to approximately 100GWh lower energy sales, higher inflation, higher interest rates, a weaker peso and higher fuel prices, among other factors.
Notwithstanding these less favorable factors, growth in energy sales volume continued, albeit at a slower 3-percent level, due to the expansion of Meralco’s customer base and strong consumer spending spurred by inward remittances by overseas Filipinos and the continuing growth of the business-process outsourcing industry.
Meralco’s customer base grew by over 4 percent to 6.1 million customers. Residential customers make up 92 percent of the total number.
The utility firm said operating and business conditions for the first quarter proved to be more challenging compared to last year. These, however, did not deter it from continuing to deliver on its commitment to its customers.
“Meralco will continue to focus on the resultant growth opportunities for its core electricity distribution business and on sustained operational excellence, mindful of business technology disruptors emerging in the power industry,” Meralco Chairman Manuel Pangilinan said. “In respect of these, we will be engaged in a continuing effort to get business and regulators aligned with these developments.”
Pangilinan did not provide a profit guidance for the year, as the utility firm continues to be more vigilant on the price pressures on consumers in the face of inflation, currency effects, interest and commodity price movements.
“Following better visibility on sales volume growth and regulatory issues, we will be providing a guidance within the coming three months,” he said.
For the year, Meralco expects a robust consumer spending and household demand to continue, supported by sustained rise in overseas remittances.
“These will be the anchors for 2017 in countering external headwinds of mixed global economic volatility and performance, and geo-political tensions in various regions,” Pangilinan said.