Power retailer Manila Electric Co. said Monday core net income climbed 11 percent in the first nine months to P18.5 billion from P16.7 billion in the same period last year as electricity sales grew 6 percent during the period.
Meralco said net income, adjusted to exclude the effect of foreign exchange gain or losses and other transactions, reached P18.3 billion from January to September, up 1 percent from P18.212 billion a year ago.
Power sales reached 35,005 gigawatt-hours, with residential customers posting the highest growth of 8 percent, followed by commercial at 6 percent and industrial at 5 percent.
It said the low inflation of 2.8 percent in the first nine months, a more favorable interest rate environment, stable foreign remittances and stable foreign remittances and a growing services sector provided the backdrop for the stable growth in sales volume.
“The 6 percent and 11 percent volume growths within the Meralco and Clark Electric franchise areas, respectively are testaments of the robust distribution systems we have built and maintained, even while we await further regulatory approvals for capital expenditures filed,” Meralco chairman Manuel Pangilinan said.
“Manageable inflation together with increased liquidity in the financial system provides opportunities for growth across all customer segments,” Pangilinan said.
Pangilinan said Meralco was expected to end the year with a core net income of P23 billion.
“There is no doubt that Meralco has performed responsively in respect of its franchise mandate to provide power at least, while maintaining highly reliable and resilient facilities. With the combined efforts of the entire organization and our subsidiaries, we expect to end 2019 with consolidated core net income of over P23 billion,” he said.
Meralco’s peak demand reached 7,740 megawatts on June 4, 2019, while Luzon peak demand hit 11,344 MW on June 21, 2019.
Electricity revenues reached P235.4 billion, up 6 percent in the same period last year on higher generation charges from higher prices at the Wholesale Electricity Spot Market, increased consumption across all sectors, appreciation of the peso versus the dollar and the commercial operations of the 500-MW San Buenaventura supercritical power plant in Quezon province on Sept. 26.
“The core distribution business, which continues to drive the growth of Meralco, shall be supported by the contribution from Meralco PowerGen’s San Buenaventura Power Ltd. beginning Sept. 26, 2019 when it declared commercial operations. SBPL going online, on schedule and within the budgeted project cost is no mean feat given multiple challenges through project conceptualization, developments and construction completion,” Meralco president Ray Espinosa said.
Cost and expenses reached P218.193 billion in the same period, up 5 percent from P206.96 billion in the first nine months of 2018.
Meralco spent P15.7 billion for its capital expenditures in the first nine months for emergency capex for network upgrade, replacement of overloaded transformers, information technology, site development for the 1,200 MW Atimonan ultra-supercritical coal plant, pole relocation, among others.
The company ended the nine-month period with 6.8 million customers, up 4 percent compared to the same period last year.
