Meralco sales likely lower in 6 months

MANILA, Philippines — Manila Electric Co. (Meralco) is expected to post lower sales in the first half, pulled down by June figures.

In a chance interview with reporters, Meralco president Oscar Reyes said the month of June is trending lower in terms of energy sales due to cooler temperature.

While the month has yet to close, June numbers are expected to significantly pull down the 7.5 percent growth in sales recorded in the first five months, he said.

“I think we will probably end up with roughly around 6.5 percent end-June,” Reyes added.

He cited the strong demand in May, which was a stark contrast to the June demand.

The Luzon grid reached its highest peak load demand of 10,876 megawatts (MW) last May 28, based on data from the National Grid Corp. of the Philippines (NGCP).

This breached this year’s peak demand forecast of 10,561 MW set by the Department of Energy (DOE) in its Power Development Plan (PDP).

However, the projected June sales growth is still higher compared to last year’s 4.2 percent growth, Reyes said.

“This year is higher because I think, to the country’s credit, industrial and commercial activities have been strong. Maybe it’s the growth of the economy,” he said.

Meralco officials earlier  said they were expecting tamer sales growth for the full-year compared to the year ago due to a generally cooler temperature.

However, officials declined to give out guidance for sales and profit until they see a clearer picture for the full-year.

Last year, Meralco’s consolidated energy sales volume expanded by five percent to 42,102 GWh, translating to a five-year compounded annual growth rate of also five percent.

This pushed the company’s net income and core net income up by six percent and three percent, respectively, to  P20.4 billion and P20.2 billion.