Meralco net income in H1 flat at P12B

Manila Electric Co. saw flat year-on-year growth in its consolidated reported net income for the first semester, remaining at P12 billion as growth in revenues barely outpaced that of costs.

Even then, the power distribution giant saw its consolidated core net income jump 14 percent to P12.3 billion.

Meralco chief finance officer Betty Siy-Yap said in a press briefing the company’s consolidated revenues rose by 10 percent to P165 billion this year as the volume of energy sold increased 5 percent.

Siy-Yap said total costs and expense for the first six half reached P149.6 billion or 9 percent higher year-on-year.

Consolidated Ebidta (earnings before interest, tax, depreciation, and amortization) revved up 13 percent to reach P19.9 billion.

Also, Siy-Yap said Meralco sold 22,823 gigawatt-hours in the six months to June, compared to 21,665 gWh in the same period last year.

Ray C. Espinosa, Meralco president and chief executive, said the company focused on sourcing electricity at the possible least cost considering the supply shortage during the first half.

“Even while the year started slow with energy sales volume growing only by 2 percent in the first quarter, the grid was soon saddled with a series of ‘red’ and ‘yellow alerts starting March as a result of maintenance and forced outages,” Espinosa said.

“The supply capacity was further challenged with the increased consumption as temperature rose to 30.1 degrees Celsius, the highest average temperature for the month of June in the last five years,” he added.

In the first semester, electricity sales went up across all three customer categories — 6 percent for residential, 5 percent for commercial, and 4 percent for industrial.

Supply-wise, Meralco chair Manuel V. Pangilinan said the 455-megawatt coal-fired San Buenaventura power plant in Quezon—operated by subsidiary MPowerGen Corp.—was linked up with the power grid during the second quarter.

“This will be a welcome addition to the supply base and security for Meralco’s customers and to the Luzon grid,” Pangilinan said.