Power distributor Manila Electric Co. said Monday net income increased 6 percent in the first quarter to P4.8 billion from P4.5 billion a year ago, on higher electricity sales.
Meralco’s core net income was unchanged at P4 billion in the first quarter from a year earlier, as operating and business conditions proved to be challenging, the company said.
Energy sales in January to March reached 9,317 gigawatt-hours, up 3 percent from 9,077 gWh sold in the same period in 2016.
Meralco’s revenues grew 12 percent in the first quarter to P64.7 billion, while operating expenses stood at P6.2 billion.
Meralco chairman Manuel Pangilinan said he expected robust spending and household demand to sustain growth this year, supported by overseas remittances and higher government spending.
“We are mindful of the pressures on consumers in the face of inflation, currency effects, interest and commodity price movements and we will be relentless in our efforts to provide the best service at the most affordable cost to consumers in our franchise area,” Pangilianan said.
Meralco president Oscar Reyes said sales growth was constrained in the first three months because of cooler temperature, the absence of February leap year effect equivalent to 100 gWh in energy sales, higher inflation rate of 3.4 percent, higher interest rates, weaker peso, higher fuel prices and average retail rate.
Reyes said despite these challenges, energy sales still grew because of the expansion of Meralco’s customer base and strong consumer spending.
Commercial sales volume accounted for 40 percent of sales, driven by real estate, retail trade and entertainment while industrial sales accounted for 30 precent on account of basic metal, rubber and plastics, and food and beverage industry demand.
Residential customers, which reached 6.1 million, captured 30 percent of sales volume in the first three months.
Reyes said the recent incidencts of red and yellow alerts in the Luzon grid and the supply disruption because of the Batangas earthquake should “serve as a stark reminder and wake up call for the urgent need for new, highly fuel efficient, highly reliable and cost competitive generating capacity, and for increased investments in a more robust and resilient transmission and distribution system.”