MANILA Electric Co. (Meralco) on Monday reported a 21-percent surge in first half consolidated core net income to P23.20 billion, from P19.20 billion a year earlier, following higher power sales.
The distribution business accounted for over half, or 55 percent, at P12.6 billion, followed by power generation (27 percent or P6.20 billion), and retail electricity supply and non-electricity businesses (P4.20 billion or 18 percent).
Consolidated revenues grew by six percent to P237.50 billion from P224.80 billion, mainly due to higher distribution volumes, even as Meralco’s average retail rate fell by four percent to P10.27 per kilowatt-hour from P10.68/kWh.
The company reported spending P19.9 billion in capital expenditures for the first half, most of which was used for new connections, asset renewals, and load growth projects.
Operating expenses, meanwhile, rose by eight percent to P19.5 billion as the firm spent on maintenance of distribution facilities, software maintenance and subscriptions, and the expenses of newly acquired SP New Energy Corp.
Consolidated debt stood at P99.6 billion as of end-June, Meralco reported, including P58.3 billion from subsidiaries.
Meralco Chairman and CEO Manuel Pangilinan said the firm was raising its full-year guidance to P43 billion from P40 billion given the first half’s strong results.
“With the steady growth trajectory of the economy, we are satisfied that Meralco will sustain its robust performance throughout the year,” he said in a statement.
“Beyond the core distribution business, we continue to invest in more generation capacity which will help address, if not eliminate, instances of supply insufficiency in the country’s power grid, and support the growing demand for power.”
Meralco’s shares fell by P3, or 0.77 percent, to P385 apiece on Monday amid a 1.14-percent downturn for the benchmark Philippine Stock Exchange index. THE MANILA TIMES
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