Manila Electric Co. reported a consolidated core net income of P15.4 billion in the first nine months of 2017, up 3 percent from P15 billion year-on-year.
The country’s biggest power retail also registered a net income of P15.9 billion, up 2 percent a year ago.
“With only two months remaining in 2017, we are indicating a guidance on 2017 consolidated core net income to be a slight improvement over the amount reported in 2016,” Meralco chairman Manuel Pangilinan said.
Meralco reported a core net income of P19.6 billion in 2016 and a net profit of P19.2 billion.
Consolidated electricity revenues rose 10 percent to P208.8 billion in the nine-month period on higher generation charge resulting from the combined effects of coal, oil and gas and the depreciation of the peso.
Distribution revenues increased four percent to P44.7 billion, while consolidated non-electricity revenues stood at P5.5 billion, down 8 percent lower year-on-year.
“The guidance is it will be slight improvement. We can’t pinpoint the exact figure,” Meralco president Oscar Reyes said.
Meralco said the full-year income forecast would be affected by developments in the retail electricity supply and the company’s “business development mode.”
Sales volume grew four percent over the nine month period to 31,401 gigagwatt-hours despite a high base in 2016.
“Meralco’s 4 percent growth in energy sales volume, 5 percent expansion in customer base and three percent increase in consolidated core net income for the first nine months of 2017 are significant achievements, considering the high base in 2016,” Pangilinan said.
Residential volume increased 4 percent due to strong consumer confidence and new build, while commercial volumes grew more than four percent on healthy demand for offices spaces and the growing gaming operations.
Industrial volumes rose over 4 percent anchored on the growth of semiconductor, food and beverage and basic metal industries.
Pangilinan said regulatory policy and judicial challenges relating to retail competition and open access temporarily weighed down on the performance of MPower, Meralco’s retail electricity supply unit.
“We are now back on track serving the growing number of contestable customers with our highly competitive product, service and price officering,” he said.
Pangilinan said Meralco aimed to build and maintain highly reliable, smart and resilient electricity network, digitally enabled customer experience platform, smart payment services, value added beyond the meter services and advanced fuel efficient reliable plants.
Meralco spent P8.1 billion for capital expenditures in the first nine months.
