Meralco Profit Up By 13% in Q2 - Marvin Germo

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Meralco Profit Up By 13% in Q2

By: Marvin Germo | July 31, 2019

Quarter 2 Performance

Manila Electronic Co. (Meralco) has recorded a core net income which is higher by 13% this second quarter or equivalent to P6.72 billion. The company believed that this growth was brought by minimal weather disturbance and lower inflation during the past months. Although the year started slow for Meralco as it only observed a 2% growth in sales volume, the second quarter filled in the gap as it rose by 8% in terms of volume. This is what the firm disclosed during the briefing and to update investors and the public about its performance during the half-year. Here are some of the other important matters you need to know about the company.

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First Half Financial Performance

If we take a look at one-time items, Meralco generated a net income which is 4.9% lower or equivalent to P6.34 billion. During the first half, the company disclosed that the core net income went up by 14% to P12.32 billion while the profit was at 0.3% or P12.01 billion. The firm expects that the coming months will be great for the company. They even gave an estimated amount of P23 billion if everything turns out well. Overall, they expect that the core net income for the year will be better than it previously recorded. If you are one of the investors of Meralco, stay tuned for further updates as there are still two quarters remaining of the year.

Energy Sales Increase Factors

There are factors that greatly affected the energy sales volume of Meralco during this year. The first, of course, is the increase in temperature that we experienced during the first quarter of the year. And since it’s already rainy season here in the country, another major factor is the slight weather disturbance. Infrequent power interruptions have a positive impact. All of these combined with lower inflation since August 2017, consumer confidence has been solidly built, thus, affecting Meralco’s performance in a great way. It can also be noted that the company has a more efficient energy sourcing and highly dependable network this year.

Meralco’s Previous Performance

In the previous year, the company only recorded a 10.9% increase in net income or P22.41 billion due to 5% growth in the volume of energy, service fees, improved yields, and higher financing income. The last quarter of 2018 has bought more prosperity to Manila Electric Co. (Meralco). By the end of 2018, the firm reported an 18% jump on its core income or P5.72 Billion in figures. During the last three quarters of the year, it generated P4.48 Billion core income which is considerably lower than what it has on the 4th quarter. Meralco also hit P4.81 Billion income with reported one-time gains and it’s 7.8% higher than the 2017’s P4.46 Billion posted in the same quarter.

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