Napocor officer-in-charge Roland S. Quilala said last year’s net loss was 36.3 percent better than projected P16.3 billion for 2001.
He attributed the drop in the company’s losses to higher sales during the period review.
The power generation firm was able to increase its sales to 40,304 gigawatthours (gWh) of electricity during the period from the previous year’s level of 37,320.
In peso terms, the company’s revenues increased to P115.7 billion from the year-ago figure of P100.1 billion owing to the stronger demand for electricity in all grids operated by Napocor.
Sales from the regular and One Day Power Sales (ODPS) programs registered increases of 6.4 percent and 56.89 percent, respectively. Regular sales account for 38,119 gWh while sales from the ODPS program reached 2,185 gWh.
However, Quilala noted that the implementation of the 30-centavo mandatory reduction after the approval of the Electric Power Industry Reform Act (EIRA) last year reduced Napocor’s earnings by P1.7 billion.
Quilala said the continuing efforts to streamline operations also helped the company trim losses.
"We have been implementing programs meant to streamline our processes and cut costs. We want to be as competitive as we could," he said.
The Napocor official said the lowering of the firm’s losses might also send a good signal to prospective investors for the company’s privatization.
"The fact that we were able to considerably lower our losses is positive news for us, especially now that we are in the crucial phase of restructuring in preparation for our eventual privatization," he added.
Napocor’s assets are set to be privatized this year. By June or July, the company will sell its transmission assets while the generation assets will go on the auction block in the second quarter of 2002 or first quarter of 2003.
The power firm has been in the red for the past few years, prompting government to push for its privatization. – Donnabelle Gatdula