Power retailer Manila Electric Co. said Monday net income rose slightly last year to P19.2 billion from P19.1 billion in 2015, as energy sales volume rose 8 percent in line with the expansion of the economy.
Meralco said consolidated core net income, excluding one-time gains, improved 4 percent to P19.6 billion from P18.5 billion in 2015, despite lower electricity prices.
“Meralco continued to have a reasonably favorable year,” Meralco president Oscar Reyes said during the release of the company’s financial and operating results.
The country’s biggest power distributor said energy sales volume increased 8 percent in 2016 to 40,142 gigawatt-hours amid warmer weather, strong domestic economy, record low inflation and lower electricity prices.
Gross revenues rose 0.5 percent to P257.2 billion in 2016 from P258.4 billion in 2015 as the decline in pass-through fuel prices muted the impact of the increase in the volume of energy distributed.
Distribution revenues increased 3 percent in 2016 to P56.9 billion, reflecting the increase in volume, which contributed P4.5 billion, offset by the impact of the lower distribution charge of P2.7 billion.
Meralco’s average distribution rate eased to P1.42 per kilowatt-hour last year from the 2015 level.
Meralco’s total customer base reached 6 million last year, up 4 percent year-on-year with residential volume growing 12 percent.
“The country’s impressive GDP [gross domestic product] growth of 6.8 percent, continued low inflation during the year and the company’s operational excellence underpinned Meralco’s strong financial results and consequently enabled good returns to its shareholders,” Meralco chairman Manuel Pangilinan said.
Meralco’s core net income in the fourth quarter alone increased to P4.6 billion from P3.1 billion a year ago, while reported income rose to P3.4 billion from P2.9 billion.
System loss rate of Meralco is now lowest at 6.35 percent, while subsidiary Clark Electric Distribution Corp.’s system loss rate eased to 3.59 percent in 2016, which resulted in cumulative savings to Meralco customers of P26.9 billion or P0.09 per kWh since 2008, relative to the regulatory system loss cap of 8.5 percent for distribution utilities.
Pangilinan did not provide any income guidance for 2017, preferring to wait for a few more months to make a final determination after demand slipped to 1.4 percent in February amid cooler temperature.
“We view 2017 with cautious optimism in light of potential global sociopolitical developments that may impact trade and investment, and result in financial uncertainty and volatility,” Pangilinan said.
Reyes said 2017 would also see higher oil, coal and commodity prices, rising interest and inflation rates and a weaker peso that could impact the consumer’s purchasing power.