Meralco’s long-term debt up 63.6% to P26.34B

Long-term debts of Manila Electric Co. (Meralco) rose 63.6 percent to P26.34 billion as of last September, from P16.098 billion in the same period last year.

The company had total liabilities of P138.13 billion for the period.

Meralco is seen to limit its borrowings in 2002 as its petition for a 30-centavo per kilowatthour (kWh) rate increase has not been approved according to BNP Paribas Peregrine which noted that the country’s largest power distribution giant is "not likely to borrow substantially without a rate increase."

Meralco said it would have to raise some P15.46 billion for capital expenditures next year, a level that is substantially lower than the estimated P6-billion capital expenditures budget this year.

For 2003 and 2004, the capital expenditure program is expected to be maintained at P6 billion.

It is not only the borrowing requirement of Meralco that will be affected by the non-approval of the rate petition which was filed in April 2000.

The company’s sales growth is expected to drop from 20.9 percent in 2000 to 13 percent in 2001. A slight recovery is seen in 2002 at 14.7 percent while the growth will eventually decrease again to 11.6 percent in 2003.

Its net profit is seen to drop substantially to P1.69 billion this year from P2.49 billion in 2000. In 2002, the net income is expected to improve to P4.4 billion and to P5.39 billion in 2003. – Donnabelle Gatdula