Summer sales power Meralco income

The Manila Electric Co. (Meralco) had a “good” first three months of 2016 as growth in sales volume compensated for the impact of lower distribution charges on revenues.

Meralco reported a consolidated net income of P4.5 billion in the first quarter of the year, a 3-percent growth from last year. Core net income, excluding one-time gains, was up 4 percent to reach P4.6 billion, said Meralco chief finance officer Betty C. Siy-Yap.

Consolidated revenues reached P60.2 billion, lower by 4 percent compared to the same period last year. Electricity revenues contributed 96 percent or P57.9 billion.

Meralco officials attributed the income growth to the 12-percent increase in sales volume “albeit at a lower average distribution rate.”

Meralco president and CEO Oscar S. Reyes said power consumption increased as consumers used their cooling appliances to combat the summer heat. Reyes also noted Filipinos were spending more on gadgets and appliances.

Maximum average temperature in the Meralco franchise area during the January to March period reached 32 degrees Celsius, or 1.4 degrees Celsius higher than the average recorded in the same period last year.  The average minimum temperature of 22.7 degrees Celsius was also 1.8 degrees warmer than the comparable period in 2015.

Meralco estimates that for every degree change in temperature, energy consumption increases by about 5 gigawatt-hours.

The coming elections would further support the company’s prospects for the year, Meralco chair Manuel V. Pangilinan said.

“The volume growth in the first quarter this year has been encouraging for the Philippine economy.  This simply motivates us to serve our customers, stakeholders and the country better,” Pangilinan said.