Power distributor Manila Electric Co. said Monday net income rose 5 percent in 2014 to P18.1 billion from a year ago, on higher demand from commercial and industrial customers amid the country’s economic expansion.
Core net income, which excludes non-recurring gains, also reached P18.1 billion last year, up 6 percent from 2013.
Meralco said the higher net income in 2014 was led by the improved contribution of customer base now at 5.6 million, higher contribution of major subsidiaries and affiliates, operational excellence and higher productivity and strong cost control.
“The country’s robust growth has provided a solid foundation for the expansion of Meralco’s residential, commercial and industrial customer base and electricity sales. Supported by strong customer focus, operational excellence and smart spend on capes, this track record of growth has enabled the company to deliver on its commitment to outperform prior year’s sales, operating and financial results,” Meralco president Oscar Reyes said.
Meralco’s board approved a final cash dividend of P8.49 per share to all shareholders of record as of March 23, 2015, payable on April 15, 2015.
Electricity revenues fell 11 percent to P261.7 billion in 2014 from P33.1 billion in 2013, mainly due to the pass-through supply revenue component on the electricity of contestable customers who switched under the retail competition and open access and the P9.3 billion downward adjustment in 2014 in the Wholesale Electricity Spot Market bill for the December supply volumes.
The WESM bill adjustment was the result of the Energy Regulatory Commission’s order to recalculate WESM prices, which were adversely affected by violations of market rules causing power supply to be constrained leading to the aberrant spike in November and December 2013.
Meralco’s consolidated net income in 2014 included contribution from its engagements as technical partner with the Integrated Electricity and Distribution Marketing of Nigeria and providing management and technical services to two distribution utilities in Nigeria and the company’s distribution management services in the Cavite Economic Zone.
Meralco said the cooler temperature in January to April 2014, disruptive typhoons such as Glenda, Mario, and Ruby and thinning power supply reserves constrained consolidated energy sales growth at 3 percent to reach 35,160 gigawatthours.