Pangilinan-led Manila Electric Co. (Meralco) reported a 14% rise in its consolidated core net income for the first nine months to P40.02 billion, driven by strong results from its distribution utility segment despite revenue growth and flat energy sales.
“Based on our power generation growth over the past nine months and the stable performance of our main distribution, we are confident that we will achieve our full-year core profit guidance of P50 billion,” Meralco Chairman Manuel V. Pangilinan said in a statement on Monday.
The distribution utility business contributed P21.94 billion to the company's total core income for the period, while power generation contributed P14.71 billion and retail electricity supplier and service subsidiaries contributed P3.37 billion.
Consolidated revenues in the January to September period rose 4.6% to P371.77 billion from P355.42 billion a year earlier, mainly driven by electricity sales.
“We are counting on the contribution of power generation to help us offset any distribution utility shortfall. However, overall, we are also looking at the contribution of our subsidiaries,” Meralco Senior Vice President and Chief Financial Officer Betty C. Sy-yap said during the company's financial and operating briefing on Monday.
Operating costs and expenses increased 4.16% to P332.26 billion from P318.99 billion last year.
Meralco's system-wide electricity sales volume reached 50,880 gigawatt-hours (GWh) in the first nine months, up 0.5% from 50,641 GWh a year earlier.
The distribution utility segment contributed 41,358 GW, the power generation arm Meralco PowerGen Corp. (MGEN) contributed 20,226 GW, and the retail power business contributed 5,524 GW.
Meralco Senior Vice President and Chief Revenue Officer Ferdinand O. “We were expecting the weather patterns to normalize, but we are seeing a worsening of the weather patterns. In fact, flooding caused by the rains has disrupted the mobility of both residential and commercial customers,” Geluz said.
Meralco cut its energy sales growth forecast to 0.4%-0.8% by year-end from an earlier estimate of 1-2%.
“We somehow changed our forecast to 0.4 or 0.8% by the end of the year,” Mr Geluz said.
Meralco shares closed at P575, down P4 or 0.69% in the local bourse on Monday.
Meralco's majority owner, Beacon Electric Asset Holdings, Inc. Partly owned by PLDT Inc. is near.
Hastings Holdings, Inc., a subsidiary of PLDT Beneficial Trust Fund MediaQuest Holdings, Inc. A unit of, is interested in businessworld Through the Philippine Star Group, which he controls. -Ashley Erica O. jose
