Power retailer Manila Electric Co. said Monday unaudited consolidated core net income fell 5 percent in the first nine months to P15 billion from P15.8 billion in the same period last year, on lower electricity prices.
Consolidated reported net income also declined 3 percent to P15.7 billion in January to September from P16.1 billion recorded in the same period in 2015. Reported net income is adjusted to exclude the effect of foreign exchange gains or losses, mark-to-market adjustments, gain on disposal of investment and other one-time exception transactions.
Meralco, however, said core net income grew 10 percent to P4.6 billion in the third quarter from P4.154 billion posted in the same period last year.
Net income in the third quarter also rose to P4.9 billion from P4.4 billion a year ago, as sales grew 7 percent to 10,386 gigawatt-hours.
Meralco chairman Manuel Pangilinan said in a financial briefing net income in full-year 2016 would likely hit P19 billion. The company posted a core net income of P18.9 billion in 2015.
“Business remains challenging yet exciting as we see electricity helping transform dreams into reality. Even as we expect the challenges from disruptive new energy sources, energy efficiency technology and innovation, more severe weather patterns, in addition to continuing policy and regulatory shifts to continue, we remain confident of our ability to deliver on our commitments to superior customer experience and a consolidated core net income for 2016 of P19 billion,” Pangilinan said.
Sales volume in the nine-month period grew9.5 percent to 30.103 gWh, as sales across all customer classes remained strong.
Meralco treasurer Betty Siy-Yap said the consolidated core net income in 2016 excluded the gain in sale by the company of an 8-percent interest in Global Business Power Corp. which was sold to JG Summit Holdings Inc. and foreign exchange adjustments on dollar denominated funds.
“Our consolidated core net income for nine months was also boosted by the noteworthy growth in the contribution of Meralco’s operating subsidiaries which include CIS-Bayad Center whose bills payment transactions,” Siy-Yap said.
Consolidated revenues reached P195.2 billion, down 1 percent from P197.047 billion in the same period last year.
“Consolidated revenues in the first nine months of 2016 was P195.2 billion compared with P197 billion in 2015. Electric revenues amounted to P189.1 billion, lower by P2.4 billion or 1 percent over the comparative period due largely to the significantly lower fuel prices which has affected the major component which is pass through generation costs,” Siy-Yap said.
Pangilinan said the near double-digit growth in Meralco’s franchise area during the nine month period which was driven particularly by residential customers “is reflected of the strong fundamentals of the economy, aided by unusually warm weather from January to April and the national elections in May.”
Residential customers posted a volume growth of 14 percent in the nine-month period on account of organic sales with lower power prices, benign inflation and new accounts spurred by the continuing in-migration of the services sector workforce.
Commercial customers grew 9 percent year-on-year, supported by the business processing outsourcing, real estate, retail trade and hospitality industries.
Industrial volumes, meanwhile, grew 5 percent supported by cement manufacturing, food and beverage and plastic and packaging industries.
