Meralco sees net income up nearly 100% to P12B

Robust electricity sales will likely lift the net income of power utility Manila Electric Co. (Meralco) nearly 100 percent to P12 billion this year, a company official told reporters Wednesday. “We are looking at a net income of P12 billion — or around P11.5 billion to P11.7 billion. We are also approaching 30-billion-kilowatt hour sales, a record sales level," said Oscar Reyes, Meralco senior vice president and chief operating officer. Last year, Meralco’s bottom line totaled P6.356 billion. Double-digit growth in industrial sales and single-digit growth for commercial and residential sales are spurring significant increases in Meralco’s net income, Reyes said. “We are also hopeful that sales will continue to be healthy next year, but we do not expect the same level of sales growth as this year’s," he said. Electricity sales are expected to reach nearly P250 billion this year from P185 billion a year ago. Favorable business conditions Meanwhile, the power firm is taking advantage of market liquidity and low interest rates, according to Reyes. “The conditions for businesses appear to be favorable this time. It’s an extraordinary time for financing. It’s certainly helping fund businesses. Normally, the constraint to businesses is financing but now they’ve made that available," he said. Meralco had entered into a P2.5-billion, seven-year term loan with Philippine National Bank for general corporate purposes, a P5-billion note facility with First Metro Investment Corp. to finance its debt obligations and growth initiatives, and a P4.8-billion, fixed-rate notes with BPI Capital Corp. Meralco serves over 4.8 million customers in its franchise area. — JE/VS, GMANews.TV