POWER distribution company Manila Electric Co. (Meralco) on Thursday reported a consolidated core net income of P10.1 billion, excluding one-time, exceptional gains and charges, in the first half of the year, down 3 percent from P10.4 billion in 2016.
Meralco recorded a consolidated net income of P10.5 billion in the first six months, down 2 percent from P10.7 billion last year.
Consolidated revenues, however, climbed 9 percent in the same period, from P128.8 billion in the previous year to P141 billion.
The company attributed the higher revenues to the combined effect of a 3 percent rise in volume of energy sold, higher generation charge pertaining to the 20-day maintenance shutdown of the Malampaya gas facilities, and the depreciation of the Philippine peso against the US dollar to P50.47:$1 as of June 30 this year from P47.06:$1 a year ago.
It said non-electric revenues dropped 10 percent to P3.6 billion from P4 billion in the same period last year. This was attributed to the net effect of the deferred award of projects to and slow work validation of work of Meralco Energy, Inc. (Mserv) and Meralco Industrial Engineering Services Corp. (MIESCOR), which was partly offset by higher bills payment volumes from CIS Bayad Center, Inc. from more than 6,700 sites and collection partners, and increased recurring revenues of Radius Telecoms, Inc. because of an expanding customer base and high service reliability.
Meralco’s average distribution rate was P1.42 per kilowatt hour, one centavo lower than in 2016, as the sales mix showed a slightly higher share of the combined commercial and industrial volumes over residential volumes.
Chairman Manuel Pangilinan said the company is continuously inspired by the optimism, here and abroad, of the country’s capacity “to sustain its robust growth trajectory and ongoing transformation to a regionally competitive economy.”
Despite certain regulatory challenges, Pangilinan added they remain upbeat about the business for the second half of the year.
Meralco holds the largest market capitalization among listed utility and power sector companies. Its units are engaged in the business of engineering and consulting, construction, bills payments, and other electricity-related services.