Power retailer Manila Electric Co. said Monday net income climbed 14 percent in the first half to P11.973 billion from P10.501 billion a year ago on a higher volume of energy sold.
Meralco said core net income also rose 7 percent in the first six months to P10.851 billion from P10.118 billion in the same period last year. Core net income includes the effects of foreign exchange gains or losses, mark-to-market adjustments, and other one-time exception transactions.
Consolidated revenues reached P150.5 billion in January to June, up 7 percent from P141 billion in the same period last year.
Meralco chief finance officer Betty Sy-Yap attributed the higher revenues “to the combined effect of a 7-percent increase in volume of energy sold and increased generation charge brought about by higher fuel prices, the weakening of the peso vis-a-vis the US dollar to pesos, higher consumer price index and higher prices in the Wholesale Electricity Spot Market.”
Sales volume increased 7 percent to 21,665 gigawatt-hours in the first half, following a strong first quarter where volumes surged 9 percent.
Sales volume growth reached 3 percent to 3,969 gWh in June alone.
Industrial sales volume grew the fastest at 9 percent, followed by residential sales at 6 percent and commercial sales at six percent.
Growth in industrial sales was largely driven by semiconductor, food and beverage, rubber and plastics industries.
Non-electric electric revenues consisting largely of revenues from subsidiaries’ operations hit P3.6 billion in the first six months, nearly unchanged from the same period last year.
Electricity revenues reached P146.9 billion, up 7 percent from P137.409 billion in the same period in 2017.
Meralco’s customer base grew by almost 5 percent to 6.5 million by end-June, as new connections across all customer classes increased by 294,000 year-on-year.
Meralco president Oscar Reyes said the company was closely watching “emerging headwinds”, possible implications on the country’s robust growth trajectory and targets and any resulting impact on electricity demand and sales.
“These headwinds include higher fuel and commodity prices, exchange rates, interest rates and inflation, as wells frictions in the global cooperation investment and trade environments,” Reyes said.
Meralco allocated P6.6 billion for its capital expenditures in the first half to complete system requirements, including for new load and customers, and system reliability and safety.
Meralco chairman Manuel Pangilinan did not provide a forecast of full-year financial results, preferring to wait for the third-quarter results.
“We are slightly cautious about the second half. Issues surrounding inflation led by higher fuel prices, commodity prices, could possibly dampen consumer demand and also the behavior of temperature this year is much lower than last year,” Pangilinan said.
“2018 is looking like a better year compared to 2017. You’ve seen the first-half numbers…So far, apart from economic conditions, there is no reason it will not continue to see better results,” he said.