Meralco projects P18.5 B core net income for 2015

MANILA, Philippines - Manila Electric Co. (Meralco) may end 2015 slightly ahead of its programmed P18.5 billion core net income target for the year due to better-than-expected power sales.

The company’s 2015 income will definitely be better than last year’s P18.1 billion, Meralco chairman Manuel V. Pangilinan said.

He also said the core guidance would be met, but exceeding it would depend on December numbers.

“Well, let’s wait for December. But certainly, in terms of meeting its guidance number for the full year, there’s a good chance that number can be met at the least,” Pangilinan said.

Achieving the P18.5-billion core income target is hinged on the strong sales seen starting May, the company chairman added.

“Surprisingly, the volume of power sold has risen starting may this year, such that year-to-date is five percent growth, which is slightly ahead of our expectations and ahead of what historic growth rate or power sold by Meralco, which is around three to four percent,” he said.

In the nine months ending September, Meralco’s consolidated net income was up 13 percent to P16.25 billion from P14.31 billion a year earlier while core net income amounted to P15.795 billion from P14.29 billion.

As of end-October, power sales grew by five percent year-on-year.

Meralco senior vice president and head of customer retail services Al Panlilio said November numbers are not yet finalized but is trending to go seven to 7-7.5 percent.

“We’ll see if we will hit that. It’s been very strong these last few months,” he noted.

The power distributor has seen higher customer count, coupled with higher temperature and low inflation will drive the company’s income growth, Panlilio said.

“Temperature is up, we’re pushing for a lot of efforts to energize last year, plus the rural electrification program have added to customer growth base. Inflation is low, so people have more spending money,” he added.