LISTED Manila Electric Co. (Meralco) said on Monday its consolidated reported net income remained flat at P12 billion in the first six months of the year.
At a press briefing on Monday, Meralco Chief Financial Officer Betty Siy-Yap did not give an explanation for the non-growth, but pointed out that the power giant’s consolidated core net income — which excludes one-time exceptional gains and charges — jumped by 14 percent to P12.3 billion in January to June from P10.9 billion in the same period in 2018.
Consolidated revenues rose by 10 percent to P165 billion in the first half from P150.5 billion a year ago, which Siy-Yap primarily accounted to “higher generation charge with increase in the Wholesale Electricity Spot Market and the weakening of the [Philippine] peso versus the US dollar.”
Meralco President and Chief Executive Officer Ray Espinosa told reporters that the firm’s energy sales volume grew by 5.3 percent to 22,823 gigawatt-hours (GWh) from 21,665 GWh.
Also, the number of customers increased by 4.3 percent to 6.745 million as of end-June from 6.468 million.
Meanwhile, non-electric revenues — largely from operations of non-electric subsidiaries — hit P3.7 billion, slightly higher than the year-earlier figure.
These were primarily generated by certain subsidiaries, including CIS Bayad Center Inc., Radius Telecoms Inc., Meralco Energy Inc. and Meralco Industrial Engineering Services Corp.
Consolidated earnings before interest, taxes, depreciation and amortization (ebitda) stood at P19.9 billion, with the ebitda margin on consolidated gross revenues steady at 12 percent.
For his part, Meralco Chairman Manuel Pangilinan said the power company expected 2019 to be a “better year compared to last year,” and told reporters after the briefing that he estimated its net income to be “at least P23 billion this year” — roughly the same amount it posted for 2018.
He also believed earnings in the second half would be volume-driven, saying that electricity demand for July was “pretty strong” at 8.3 percent.
Meralco shares dropped by P3 or 0.80 percent to close at P372 apiece on Monday.