Manila Electric Co. (Meralco) reported a core net income of P5.93 billion in the second quarter, higher by 7.4% compared with the P5.52-billion profit a year ago, as the country’s biggest power distribution utility posted higher energy sales during the period.
Including one-time items, the company’s reported net income reached P6.66 billion, up 17% from P5.68 billion a year ago, after a 7% revenue rise to P79.74 billion, the bulk of which came from electricity sales.
“The higher revenue is the result of the combined effect of the 7% increase in volume of energy sold, and increase generation charge brought about by higher fuel prices, the weakening of the peso versus the US dollar, higher prices at the wholesale electricity spot market, as well as higher local consumer price index,” said Betty C. Siy-Yap, Meralco senior vice-president and chief finance officer, during the company’s media at its headquarters on Ortigas Ave., Pasig City.
“The average distribution rate of Meralco was at P1.42 per kilowatt-hour, 1 centavo lower than that of 2017 as the sales mix reflected a slightly higher share of industrial over residential volumes,” she added.
In the first half, consolidated core net income rose 7% to P10.9 billion, while reported consolidated net income rose 14% to P12 billion. Revenues reached P150.5 billion, up 7%, while volume of energy sold was at 21,665 gigawatt-hours, also higher by 7%.
Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Victor V. Saulon

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