Meralco seen to exceed core profit goal in 2014

SUSTAINED economic activity and personal consumption will likely boost power sales this year as it did last year, Manila Electric Co. officials said.

They said Meralco generated enough sales in 2014 to beat its core profit target of P17.8 billion.

Company president Oscar S. Reyes told reporters that Meralco was on track to report “slightly better” figures than the P17.8 billion target.

As for the profit guidance for 2015, Meralco chair Manuel V. Pangilinan said the company was expecting “a number higher than that of 2013 (P17.02 billion).”

Pangilinan said power sales typically grow by 3 to 4 percent, but “maybe more, this year.”

The month of January, he said, was “a little tough” because the weather was cool in the first two to three weeks, weakening demand for electricity.

However, economic growth is still quite strong and this indicates that power sales should return to growth path. Pangilinan noted that personal consumption and manufacturing activities tend to boost power sales, helping improve the company’s bottom line.

The increase in power sales may start happening in the latter part of January as the weather starts to become warmer. “Most likely, by February we should be OK,” Pangilinan said.

Meralco SVP and head for customer retail services Al Panlilio said earlier that the company likely ended 2014 with a 3-percent sales growth and might be able to generate another 3.5 percent growth in power sales in 2015.

Panlilio said lower oil prices tend to encourage general consumption, which could translate to increased power consumption, even though customers in general strive to use electricity wisely, especially those in the higher income segments.