Manila Electric Co. (Meralco) said that its core net income grew by 6.3% in 2019 or equivalent to P23.83 billion. This is driven by the power distribution utility with strong energy sales and stable electricity usage by the clients in business firms and online casinos. The company said that the electricity revenues that reached P310 billion were stable at 97% of gross revenues. This is higher compared to P295.4 billion in 2018. Likewise, the aggregate distribution revenues grew by 6% in 2019 or equivalent to P65.9 billion. This reflects the impact of higher volume distributed and the sales mix.
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Apart from the core net income and revenues, Meralco also reported a net income increase of 1.2% to P23.29 billion, excluding one-off items. This figure was adjusted excluding the effect of impairment charges, foreign exchange gains or losses, mark-to-market changes, and exceptional transactions. Meralco had a core net income of P5.38 billion, with a 5.9% increase and income of P4.96 billion, with a 3.1% increase in the fourth quarter alone. The energy sales in 2019 were considered as the highest in the past three years, with 5.8% growth to P5.38 billion.
In 2019, residential customers had the biggest growth rate when it comes to power consumption. The growth was at 7.6% and this was faster than commercial and industrial segments, which had 5.8% and 3.8% growth, respectively. In addition to this, the commercial customers of Meralco still contributed the biggest share on its customer base, accounting for 39.4% while residential was 31.3% and industrial was 29.3%. Both PGO and BPO industries are making a new version of condominium dwellers and it’s affecting the company in a positive way. It’s not only in Manila where the customer base is growing but as well as outside the Metro.
At the end of the year, Meralco had a customer count of 6.883 million. This was higher by 41% compared to 6.615 million recorded in 2018. Residential users made up 92.1% of the customer count of the utility. Residential units being turned over to residents and future homeowners were already contributing to these figures. The property sector is buoyant that it doesn’t only attract commercial sales but as well as residential sales. The more residential places are turned over, the more it gives them energy sales.