Meralco income drops sharply

MANILA, Philippines -- Manila Electric Company (Meralco), the Philippines largest power distributor, has said its unaudited 2001 net income dropped 40 percent year-on-year.

The firm also said that the volume if power sold in 2001 grew 3.7 to 3.8 percent year-on-year as compared with a 7.1 percent growth in 2000.

Meralco previously reported an audited net income of 2.49 billion pesos ($48.54 million) in 2000.

But it posted a 45 percent drop in its net income to 1.4 billion pesos during the first nine months of 2001 from 2.55 billion a year earlier, which the company attributed to lower sales growth and the government's delay in approving a motion for a rate hike.

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The Lopez-owned firm first filed its application for a 30-centavo per kWh rate increase in April 1999 in order to implement its expansion program.

But the petition remains pending with the government after a reshuffle of the energy regulatory commission.

Earlier, the firm said it would reduce its capital spending to 5.5 billion pesos ($105 million) this year with the continued delay in its petition.

In a report on Thursday, Meralco treasurer Rafael Andrada was quoted by the Manila Standard newspaper as saying the firms power sales to industrial users slowed down due to the global slump in demand for consumer products.

Meralcos consumers included industrial zones such as electronic manufacturers, which is the Philippines main export.

The country's electronics exports dropped sharply last year from the previous year's level due to a slump in demand in its major export markets Japan and the United States.

Hopeful

Despite the dismal figures, the company remains hopeful the audited numbers would yield better results.

The annual audit is still going on and the numbers may change, Meralcos head of finance Daniel Tagaza told Reuters news agency.

The firm will submit the audited 2001 figures to the Securities and Exchange Commission by the end of March.

The Multex Global Estimates net profit consensus for the company's growth this year is 3.84 billion pesos or four pesos a share this year, up from 2.44 billion pesos or 2.50 pesos a share last year.

Meralco serves 3.7 million customers in the capital Manila and nearby provinces.

In 2000, the firm sold 21.9 billion kWh of electricity in its franchise area, which covers 30 percent of the Philippine total land area.

The output in this area accounts for 48 percent of the country's gross domestic product.

Shares of restricted Meralco A rose 1.64 percent to 31 pesos on Monday, while Meralco B gained 3.33 percent to 46.50 pesos.

The Philippine main share index also ended the day higher, adding 1.55 percent or 22 points to 1,438.83.