Meralco income surges by 65% in Q1

By Jordeene B. Lagare – April 27, 2021
from The Manila Times

The Manila Electric Co. (Meralco) on Monday reported a consolidated net income of P4.357 billion in the first three months of 2020, or a 64.2-percent surge from the P2.653 billion posted in the same period a year ago.

Consolidated revenues during the period, however, dropped by 6.8 percent to P64.712 billion from P69.466 billion.

Meralco primarily attributed the decrease in gross revenues to the lower volumes distributed and overall lower generation and transmission pass-through charges.

Electricity revenues amounted to P62.484 billion, down by 7.2 percent from P67.348 billion.

Meralco President and Chief Executive Officer Ray Espinosa reported that consolidated energy sales fell by 4 percent to 10,473 gigawatt hours (GWh) from 10,879 GWh.

The residential segment took the lion’s share at 35 percent as work-from-home arrangements and stay-at-home policies continued. Commercial and industrial segments took 34 percent and 31 percent, respectively.

Meralco First Vice President and Chief Commercial Officer Ferdinand Geluz said energy sales in the first quarter were dragged down by the commercial segment due to the effects of the pandemic.

But the industrial segment gradually recovered which, according to Geluz, tempered the overall decline in energy sales.

Meralco’s overall customer count grew by 4 percent to 7.2 million from 6.956 million for a total year-on-year addition of 249,000 net new accounts.

Meanwhile, consolidated reported net income climbed by 65.5 percent to P4.334 billion from P2.619 billion, which Meralco accounted to the recognition of its share in impairment of the investment in PacificLight Power Pte Ltd. of P2.7 billion.

Consolidated core net income was 11-percent lower at P5.1 billion from P5.7 billion.

Reported earnings before interest, taxes, depreciation, and amortization, or Ebitda, climbed by 131 percent to P11.784 billion from P5.095 billion.

Meralco Chairman Manuel Pangilinan expressed optimism over the power distributor’s earnings for the year.

“We’re optimistic about this year’s results for Meralco now that, as Ray just mentioned, GBPC (Global Business Power Corp.) is part of its portfolio now,” he said during Meralco’s virtual briefing held on Monday.

Meralco, through its unit Meralco PowerGen Corp., has completed the acquisition of the 86 percent stake in GBPC from Metro Pacific Investments Corp. and JG Summit Holdings, Inc.

Pangilinan said the recent transaction “should raise its (Meralco’s) profitability for the year.”

At the same time, Meralco believes this year’s energy sales will exceed those figures recorded in 2020.

“As you know, even if we are in ECQ (enhanced community quarantine) today, it’s a more lax version compared to the first one. The lockdown is not really that punishing,” said Espinosa.

Meralco shares closed at P275 apiece on Monday.