Meralco’s profit jumps an electrifying 127%

MANILA Electric Co.’s first-quarter net income surged 127 percent to P2 billion from P900 million on higher charges and increased sales to industries as a result of the recovering economy, the company told the Stock Exchange Thursday.

Revenue rose 34 percent to P61.1 billion, the country’s largest power retailer said.

“We draw optimism from the resilience of the industries as this results in a steady growth of our core business,” Meralco chairman Manuel Lopez said in a statement.

“We are also looking at all avenues beyond our franchise area and opportunities beyond distribution.”

Electricity sales by volume rose 14 percent in the first three months of the year, led by industries whose purchases grew 29 percent after a decline of 10 percent a year earlier.

Sales to commercial customers gained 11 percent, and those to residential clients increased 7 percent.

The Philippines’ $167-billion economy slowed last year as the global recession reduced exports and capped remittances from overseas nationals.

Economic Planning Secretary Augusto Santos said on March 22 that the economy probably expanded by between 2 percent and 3 percent this quarter, the fastest pace in a year.

Meralco said it will pay a regular dividend of P3.15 a share on May 11, accounting for 50 percent of last year’s core earnings. The utility may also pay a special dividend.

“Our core earnings per share for the first quarter is at P1.757, 130 percent higher than in 2009,” the company said.

“The improvement is attributable mainly to a higher volume of energy sold and the adjustment in distribution rates, which took effect in May 2009.”

Earnings before interest, taxes, depreciation and appreciation rose 60 percent to P5 billion.

Meralco said it sold 6,996 gigawatt hours in the quarter, which was up 14 percent from 2009. Alena Mae S. Flores, with Bloomberg