Meralco profit rose 4% in 2016 on higher sales

Manila Electric Co. (Meralco), the country’s largest electricity retailer, reported an increase in profit last year amid strong energy sales.

Meralco announced Monday that core profit for the full-year 2016 hit P19.6 billion, up 4 percent year-on-year, as energy sales volume rose 8 percent.

Total revenues hit P257 billion last year, down 0.5 percent due to the continuing decline in pass-through fuel prices.

Electricity revenues during the period amounted to P249.2 billion, about 97 percent of gross revenues, Meralco said.

Meralco chair Manuel V. Pangilinan said on Monday that the growth in energy volume within Meralco’s franchise area was “robust” across customer classes in residential, commercial and industrial.

As the company touted favorable economic and climate prospects last year, citing warm weather, a strengthening economy and strong demand, officials painted more guarded prospects for 2017.

“For Meralco, we view 2017 with cautious optimism in light of potential global socio-political developments that may impact trade and investment, and result in financial uncertainty and volatility,” Pangilinan said.

He said expected “headwinds” this year included higher oil, coal and commodity prices, rising interest and inflation rates, a weakening Philippine peso and cooler temperatures.

“These will require the company to move to a higher trajectory of customer service excellence and operational outperformance,” Pangilinan added.

Meralco ended 2016 with a record 6.04 million customers, a growth of 4 percent.