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March 19, 2008 |
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MANILA ELECTRIC: Books PHP4.04 Billion Net Income in 2007 Manila Electric Company earned a net income of PHP4.04 billion in 2007, the audited financial statements of the company showed. The bottom line dipped by PHP13.88 billion compared to that booked in 2006 because of the reversal of losses in that year. The company pointed out that 2006 net income would have been just PHP3.66 billion if not for the reversal of probable losses in that year of PHP15.73 million. The reversal in 2006 was a result of the favorable ruling of the Supreme Court on Meralco's Unbundled Rate Case that questioned the granting of a rate increase to the company by the Energy Regulatory Commission in 2003. Total revenues increased by 5.19% from PHP190.79 in 2006 to PHP200.69 billion in 2007. Revenues from the sale of PHP196.17 billion in 2007. This was brought about by the increase in overall electricity sales of 4.6%, the company states. Sales to commercial customers grew by 6.0%, followed by industrial customers at 4.2% and residential customers by 3.3%. Revenues from real estate through Rockwell Land Corp. grew by 18.75% from PHP179 billion in 2006 to PHP2.12 billion in 2007. Total expenses increased by 5.43%. The company notes that the increase was mitigated by a decrease in interest expense of 40.09% from PHP5.10 billion in 2006 to PHP3.06 billion in 2007, and reversals of provisions for tax assessment and legal claims amounting to PHP327 million and provisions for probable losses on disallowed receivables amounting to PHP646 million. Capital expenditure for the year totaled PHP6.79 billion. Headquartered in Ortigas, Pasig City, the Manila Electric Company -- http://www.meralco.com.ph/ -- is the largest utility in the Philippines, providing power to 4.1 million customers in Metropolitan Manila and more than 100 surrounding communities. As deregulation takes effect, Meralco is reducing its dependence on state-owned National Power Corp. by increasing the amount of power it purchases from independent power producers. Meralco is also preparing for competition by moving into non-regulated activities, including energy consulting, independent power production, engineering, fiber optics, e-commerce, and real estate. The Troubled Company Reporter-Asia Pacific reported on Dec. 14, 2007, that Standard & Poor's Ratings Services revised the outlook on its ratings on Meralco to stable from negative. The 'B-' long-term issuer credit rating on Meralco was affirmed. |
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