Meralco Q1 profit inches up to P4.5B
Power utility giant, led by bilyonaryo Manuel V. Pangilinan, rose by only three percent in the first quarter to P4.5 billion as higher expenses weighed on its bottomline.
Consolidated core net income, which excludes one-time exceptional charges, amounted to P4.6 billion, up four percent year on year due to the 12 percent increase in volume, increased contribution of subsidiaries to non-electric revenues and significantly higher yields from temporary investments.
Revenues, however, fell four percent to P60.2 billion, P57.9 billion of which comprised electric revenues.
Operating expenses grew 16 percent to P6.4 billion. Labor-related and contracted services remain to be the significant operating cash costs of Meralco, accounting for 65 percent of total operating expenses.
Pangilinan said “the sustained upward momentum of the Philippine economy, coupled with very warm temperatures throughout the quarter contributed to driving electricity usage to a higher trajectory providing growth opportunities for electricity demand across all industry sectors.”
“The coming electoral process is expected to further support this growth through the balance of the year. We remain resolute that Meralco stays ahead of the curve in assuring a robust power supply position and a strong, highly-resilient power distribution infrastructure system to fully support the nation’s economic trajectory and our people’s improving lifestyles in a technology-innovating and digitally-changing environment,” he said.