Higher sales boost Meralco H1 earnings to P9B

Manila Electric Co., the country’s biggest power distributor, posted a 15-percent hike in its consolidated core net income to P9 billion in the first half from P7.8 billion a year ago, due to the higher-than-expected volume of electricity sold during the period.

In a disclosure to the Philippine Stock Exchange on Monday, Meralco reported that consolidated revenues rose by 17 percent to P143.6 billion in the first half from the year-ago level.

Pushing the revenue level higher in the first six months of the year was the 10-percent increase in the total electricity sales volume to 16,215 gigawatt-hours.

The higher-than-expected volume growth across all customer classes was, meanwhile, driven by increased economic activity as well as the higher number of new connections.

Consolidated free cash flow amounted to P12 billion as of end-June, reflecting lower net cash flows from operations after payment of cash dividends and taxes due. Cash and cash equivalents stood at P51.6 billion as of end-June this year, which included the proceeds from long-term borrowings secured to pre-fund capital expenditures and investment commitments related to power generation, the power firm reported.

Given the six months of unprecedented monthly growth, Meralco said it will be raising its profit guidance from the previous P15 billion.

“Given our first-half results and the positive outlook for the second half of the year, we are prepared to raise our full year 2012 core net income guidance to P15.5 billion,” Meralco chairman Manuel V. Pangilinan said on Monday.