Meralco chief financial officer Betty Siy-Yap said cash flow was slowly improving with the lightening of constraints on general community quarantine.
The consolidated net profit of Manila Electric Co. in the first semester fell to P6.8 billion by 43 percent year-on-year.
It was because of the latest coronavirus pandemic that ravaged its market. But, company officials said six-month results offered some support with volumes close to pre-pandemic rates.
From January to June, Meralco’s core net income fell by 14 percent to P10.6 billion. It was because of gross revenue, which settled at P142.3 billion.
The touchpoints of the distribution giant — its market centers, payment centers, and third-party networks such as banks.
“The daily cash collections have gradually risen. It moved closer to the pre-ECQ (enhanced community quarantine) level of a daily average of over P1 billion,” Siy-Yap said.
Meralco Was Unable to Receive or Buy from Suppliers
She said electricity sales volume was 7-percent lower at 21,139 gigawatt-hours, the cost of purchasing power was also lower thanks to lower generation charge, spot market prices, and the “force majeure” claims.
These claims saved Meralco from its contractual obligations to compensate certain suppliers. It was for a certain amount of energy even though it was not the user or take-or-pay system. Those have spared a total of P1.8 billion customers so far, officials said.
Regardless of the ECQ and the resulting decrease in demand for electricity, Meralco was unable to receive or buy the agreed amount of energy from those suppliers.
Meralco chairman and chief executive Ray C. Espinosa said the firm was ensuring companies of all sizes are poised to bounce back for the remaining five months of 2020.
Meralco chair Manuel V. Pangilinan said they expected full-year net income to reach about P21 billion in 2020.
Follow and join us on Youtube, Instagram, Facebook, and Twitter to be part of the trader community in Asia
