TransCo income up to P10.8B as of July

The National Transmission Corp. (TransCo) has recorded a net income of P10.84 billion as of end-July 2006, 10 percent more than the earnings registered in the same period in 2005. 

TransCo president Alan T. Ortiz said the favorable earnings performance for the first seven months of the year shows strong indication that the company would be able to exceed its P16.14-billion earnings in 2005. 

Based on the the company’s latest financial report, its net utility revenue increased by 8.4 percent to P15.54 billion for the seven-month period from last year’s P14.33 billion.   

The better earnings could also be traced to the effort of the company to trim down its expenditures during the period.

TransCo’s operating expenses went down by 26.5 percent or P1.7 billion from the budgeted amount of P6.41 billion. 

Due to the drop in expenses, TransCo’s operating ratio improved to 30.31 percent from last year’s figure of 30.80 percent.  

Ortiz said the period’s strong financial performance could also be attributed to the implementation effective April 2006 of the interim Maximum Allowable Revenue (MAR) for the current year as approved by the Energy Regulatory Commission (ERC).  

"This consistently favorable financial statements during the past years make TransCo a good investment prospect for the future concessionaire," he said. 

The TransCo chief attributed the favorable financials to the collaborative effort of management and its more than 3,700-strong workforce as they gear up for the firm’s eventual privatization.

"Over the years, we have worked hard to become at par with world-class organizations.  Practically all our units have adopted internationally-recognized quality management systems to make our processes more efficient and customer-oriented," he said.  

TransCo has also been cited as the best GOCC in terms of corporate governance by the Institute of Corporate Directors. 

Ortiz is optimistic that the company would be able to sustain the favorable financial position. 

"We will not rest on our laurels. We will accomplish more in the coming months and years," he said. 

Ortiz said they would continue to engage in various projects and programs that would help the company’s objective to provide reliable and dependable power to the country.