February 25, 2013

P16.3B Net Profit Hit by Meralco


9% increase in its combined core income to a total of P16.3B last year according to the report posted by Manila Electric Co. (Meralco).

Real estate, manufacturing and service sectors and millions of overseas Filipino workers are the major factors in the profit increase according to Meralco president Oscar S. Reyes. He explains that that those overseas workers help the domestic consumption resulting in growth of commercial energy and residemtial sales volume.

“This is another record year for Meralco in terms of sales, volume, operating performance and financial results,” Reyes said.

However, the company's overall dept balance is still P24.6 billion inspite of a good year for Meralco according to Meralco chief finance officer Betty Siy Yap. she also added that they are planning to refinance P14 billion to P15 billion of its debts within the second or third quarter of the year.

“Our operating performance translated to record earnings and represented four consecutive years of increasing amount of dividends since 2009. While we face increasingly stringent regulatory policies, Meralco stayed focus on its effort to offer solutions to our growing customer base of more than five million,” noted Meralco chair Manuel V. Pangilinan.

Pangilinan declined to disclose a profit guidance for the year as they have yet to assess the impact of the upcoming elections on electricity sales.

“We were off to a good start with respect to the first two months of 2013, with energy sales up 3.9 percent in January and for February, a 2.8-percent increase in energy sales. We will wait for the first quarter results to better assess the full impact of the effect of elections on the economy and on the sales and profitability of Meralco in the first quarter,” Pangilinan explained.

“As we look into the remaining 10 months of this year, we continue to focus on delivering on our growth and profitability opportunities and expect core net income for 2013 to exceed 2012,” Pangilinan further said.