Meralco H1 results likely better than ’12

MANILA, Philippines - Manila Electric Co. (Meralco), the country’s biggest power distributor, said its first-half performance likely surpassed year-ago figures on the back of strong demand for electricity.

Meralco chairman Manuel V. Pangilinan said volume of electricity and distribution revenues in the first half of the year are likely ahead compared to the same period in 2012.

“It will be ahead of last year both for volume and most likely at least for our distribution revenues but I cannot predict the other (components) because we don’t have control over the other revenues that we generate such as transmission because those are pass-thru,” he told reporters on the sidelines of the launch for the 2013 Ten Outstanding Young Men Awards.

Nevertheless, Pangilinan said Meralco likely generated more profits in the first half of the year compared to the same period last year.

“It’s better compared to last year,” he said.

In the first half of 2012, Meralco reported a core net income of P9 billion, up 14 percent from P7.8 billion in the same period in 2011 due to higher sales.

Total electricity sales volume, meanwhile, rose to 16, 215 gigawatt-hours in the first half of last year, 10 percent more than sales in the same period in 2011.

Meralco reported a 3.2-percent growth in electricity sales in the first four months of the year over the same period last year. In April alone, sales surged 9.2 percent.

This developed as Pangilinan welcomed the upgrade Meralco received from Standard & Poor’s Ratings Services, which raised its long-term corporate credit rating.

The global debt watcher upgraded Meralco’s rating to ‘BB’ from ‘BB-’ with a stable outlook.

At the same time, S&P has warned that high dividend payout and an aggressive strategy in re-entering the power generation business could weaken Meralco’s financial risk profile.