Meralco secures P3-billion loan from Union Bank

MANILA, Philippines - Power utility giant Manila Electric Co. (Meralco) has secured a P3-billion, five-year loan from Union Bank of the Philippines.

In a disclosure to the Philippine Stock Exchange, Meralco said the loan, which was fully drawn yesterday will be used for general corporate purposes.

As of end-August this year, Meralco’s outstanding debt amounted to P15.008 billion.

The company was earlier reported to have P2.5 billion worth of loans that would mature by the end of the year and about P5 billion to P6 billion in 2013.

Meralco, owned by three major shareholder groups led by First Pacific-PLDT, San Miguel Corp. and the Lopez family, has set a capital expenditure budget of P8 billion this year to support its projects and expansion plans.

Meralco reported a 19.2-percent growth in net earnings in the first half this year to P3.2 billion due to higher distribution revenues and a slight decline in operating and maintenance expenses. 

The power retailer’s core net income went up 2.1 percent to P2.9 billion while earnings before interest, taxes, depreciation, and amortization rose 6.4 percent to P8 billion. Consolidated revenues decreased to P94.5 billion from P95.9 billion a year earlier.

The global economic crisis dampened electricity consumption in the industrial sector, as sliding exports forced most manufacturers to close shops.

The weak demand in the industrial sector offset stronger electricity sales in the residential and commercial sectors.

Meralco’s residential and commercial customer base improved 2.6 percent to 4.63 million customers.  – Zinnia Dela Peña