Meralco net income down 9.6% in Q2

The Manila Electric Co. (Meralco) posted a consolidated net income of P5.6 billion in the second quarter of 2017, down 9.6 percent from P6.2 billion a year earlier.

"One of the reasons would be, the contributions of our subsidiary are actually lower because of the delayed award of some projects," Meralco vice president and chief financial officer Betty Siy-Yap told reporters in a press briefing in Pasig City on Thursday.

"The other would be... lower retail revenues of Meralco's retail electricity supply unit as a result of temporary disruption in commercial operations of distribution utilities and electric cooperatives, and intensified competition in the retail electricity supply market," Siy-Yap added.

Likewise, the company's core net income decreased by 5.17 percent to P5.5 billion from P5.8 billion.

For the first six months of the year, Meralco posted a consolidated reported net income of P10.5 billion, down 2 percent year on year.

The company's revenue stood at P141 billion in the first half, up 9 percent from P128.8 billion.

Siy-Yap said that the higher revenue resulted from a 3-percent increase in volume of energy sold; an increase in generation charge due to the 20-day maintenance shutdown of Malampaya gas facilities, which required the use of more expensive alternative fuel for the Sta. Rita and Sta. Rosa power plants; and the depreciation of the peso against the dollar.

Meralco president and CEO Oscar Reyes reported during the briefing that the company's customer base rose by 4.5 percent to 6.17 million customers from 5.91 million.

Consolidate costs and expenses also increased by 11 percent to P127.5 billion from P114.8 billion. — BM, GMA News