The weak performance of the country’s economy has impacted sales of the country’s top power distributor and telecommunications provider, Manuel V. Pangilinan on Thursday told reporters on Thursday.
Pangilinan chairs the Manila Electric Co. (Meralco) and the Philippine Long Distance Telephone Co. (PLDT).
Pangilinan said on the sidelines of the launch of the Maynilad Water Academy in Antipolo that Meralco’s power sales declined 1.1 percent year on year in the first half of 2011. Still, it managed to recover in the third quarter.
“If electricity sales are a leading indicator of economic growth, then indeed the economy slowed down in the first half this year, compared to the first half of last year. Of course the first half of last year was an election year so the slowdown is understandable. But I think that (the recovery in the third quarter) is good news. Again, if power sales are an indicator of economic growth, then the economy seems to be recovering,” Pangilinan said.
In fact, Pangilinan said, Meralco may be able to match the 2010 full-year power sales this year if the recovery in power sales continues. He said Meralco could meet its 2011 revenue target.
Also, Pangilinan expressed concern on the impact on the Philippines of the debt issues in the United States and Europe, fears of a double dip recession, bearish stock markets, and other economic concerns abroad.
“While we’re not an active participant in the global economy, we’re not immune to the effects. We’re especially concerned about the impact on our [business process outsourcing], on the employment of our [overseas Filipino workers] and on remittances,” he said.
The impact of the economic slowdown was “more adverse” for PLDT, Pangilinan said, explaining that the telecommunications giant’s revenue would be lower in the third quarter of 2011 compared with the same period in 2010.