Meralco posts record year as sales surge

MANILA, Philippines — Manila Electric Co. (Meralco) continued to surpass previous profit and revenue numbers as it delivered record sales volume in 2018.

“The year 2018 proved to be another record year for Meralco in terms of sales volumes, operating and service excellence, value creation for consumers across all classes, financial results, and a fair return to Meralco shareholders,” Meralco chairman Manuel V. Pangilinan said.

The power utility firm’s core net income rose by 11 percent from P20.2 billion in 2017 to P22.4 billion last year while reported net income went up 12.95 percent from P20.4 billion to P23 billion.

Consolidated gross revenue grew eight percent to P304.5 billion from P282.6 billion on the back of higher volumes and pass-through charges, Meralco chief finance officer Betty Siy-Yap said in a briefing yesterday.

In the same briefing, Meralco president Oscar Reyes said 2018 proved to be another strong year for the company “on the back of relatively conducive economic activity.”

He cited the 6.2 percent gross domestic product (GDP) growth last year which averaged over six percent over the last nine years despite the peso’s weakness and steep inflation last year.

“It’s been something that the Philippines has manage to move to a new trajectory of growth,” Reyes said. “These have provided a setting for what we have been able to achieve in 2018 and in the last nine years.”

The power distributor’s consolidated energy sales volume increased by five percent to 44,313 gigawatt-hours (GWh). Except for the first three months, monthly energy sales exceeded 3,500 GWh.

This was attributed to the rapid urbanization of the north and south areas of the Meralco franchise area, increasing Philippine offshore gaming operators (POGOs) and sustained demand for business process outsourcing (BPO) services.

“The sustained growth of the domestic economy, and the resilience of the global economy amidst political uncertainties, have allowed Meralco to still achieve healthy energy sales growth in 2018,” Pangilinan said.

Meanwhile, Meralco said 288,000 new customers, with overall customer base expanding by five percent to 6.61 million at year-end.

For this year, Meralco is seen to continue its growth trajectory amid improving economic environment and the upcoming mid-term elections in May.

“I feel this year’s going to be better this year. Inflation has tapered down. I think the risk of interest rates rising have receded, so that’s good news…Overall, this would be a better year with a positive impact on power demand,” Pangilinan said.

Meralco is looking at a three percent rise in energy sales this year, lower than the actual last year, given the high base, Meralco senior vice president Alfredo Panlilio said.