Manila Electric Corporation (Meralco) is eyeing to hit its P23-billion core income target for the year. The company believes that this is achievable knowing it has managed to sustain its performance for the year. The firm has also disclosed that the full-year profitability on a core basis of Meralco will be north of P23 billion. It seems like Meralco knows what it is doing in order to hit the target they have been eyeing. Let’s see the essential parts of this news.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.
According to Meralco, the first nine months of 2019 have brought an actual core income of P18.5 billion. With this already achieved, the firm thinks that it will likely hit P23 billion given that there is still one quarter remaining of the year. During the third quarter this year, Meralco generated a core net income of P6.14 billion, which is 5% higher than what it posted last year during the same period. This is excluded of the one-off items. If the one-off items are included, the net income reached P6.31 billion or up by 1% than the previous year.
The company said that the momentum gained during the first two quarters of the year was sustained in the third quarter. The 8% increase in sales volume is, of course, one of the indications that it indeed brought the gains through the second to the last quarter of the year. This increase in sales volume resulted in a consolidated growth of over 6% for nine months. In fact, as of September, the core net income of Meralco was at P18.45 billion or 11% higher while the reported net income hit P18.32 billion or 1% higher. Meralco is doing great knowing the figures it has by the end of the third quarter.
When it comes to revenues, Meralco had P241.13 billion or 6% higher for the nine-month period. Electricity sales were at around P235.38 billion, which accounted for the bulk of revenues. This was also 6% higher compared to the same period last year. The energy sales, which were at 35,004 gigawatt-hours, rose by 6.3% from last year. The growth was driven by as follows: 8% by residential, 6% by commercial, and 5.1% by industrial. The sales for the nine-month period came just right when the inflation is slower, making it a more favorable interest rate environment.