Meralco profit up ‘despite uncertainties’
Credit to Author: JORDEENE B. LAGARE| Date: Tue, 26 Feb 2019 16:29:57 +0000
Manila Electric Co. (Meralco) reported on Tuesday that its consolidated net income increased by 13 percent to P23.1 billion last year from P20.5 billion in 2017, despite economic challenges.
During a briefing at its main office in Pasig City, the listed power titan said its consolidated core net income reached P22.4 billion in 2018, a 11-percent growth from P20.2 billion the year before.
Gross revenues hit P304.5 billion last year, up 8 percent from the 2017 figure, due to higher volumes and pass-through generation charges resulting from higher average fuel costs, a weaker peso and higher spot prices at the Wholesale Electricity Spot Market.
Consolidated electricity and distribution revenues rose by 7 percent and 4 percent to P295.4 billion and P62 billion, respectively.
Consolidated core earnings before interest, tax, depreciation and amortization (ebitda) amounted to P37.4 billion, an 8-percent rise from 2017, with core ebitda margin at 12 percent on consolidated revenues.
Total customer base grew by 4.6 percent to 6.61 million from 6.3 million at end-2017.
Consolidated energy sales volumes climbed by 5 percent to 44,313 gigawatt hours (GWh) last year, including the 527 GWh distributed by subsidiary Clark Electric Distribution Corp.
Cash flows from operations hit P40.1 billion, while free cash flows reached P5.4 billion.
According to Meralco, it posted all these increases despite the slightly lower gross domestic product (GDP) growth, higher inflation and interest rates, rising coal prices and the weak peso recorded in 2018.
“The sustained growth of the domestic economy, and the resilience of the global economy amid political uncertainties, have allowed Meralco to…achieve healthy energy sales growth in 2018, despite an increase in the pursuit of greater energy efficiency across all customer classes distributed and self-generation, particularly rooftop solar, which could negatively impact sales volumes,” Meralco Chairman Manuel Pangilinan said in a statement released during the briefing.
Established in 1919, Meralco holds the largest market capitalization among listed utility and power-sector companies in the country. Its units are into engineering and consulting, construction, bills payments, and other electricity-related services.
Shares of Meralco added 6 centavos or 0.16 percent to end at P375.60 apiece on Tuesday.
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