Meralco trims net loss in 2005
Wednesday, March 29, 2006
Erik dela CruzXFN-Asia
(UPDATE) MANILA Electric Co (Meralco) said it booked a parent net loss of 411 million pesos and 350 million on a consolidated basis in 2005, trimming the year earlier losses, as it benefited from a modest rise in sales.
The country's largest power distributor restated its net loss in 2004 to 2. 03 billion pesos at the parent level. The consolidated net loss in 2004 reached 1.88 billion pesos.
The company's electricity sales in 2005 grew 0.6 percent, offsetting the impact of heavy provisions for probable losses in the event the court makes a final decision against its rate unbundling petition.
In its financial report, Meralco said its 2005 result were also "significantly" affected by changes in accounting policies.
Without the provisions that reached 5.9 billion pesos for the whole year and the shift to new accounting standards, Meralco said it would have posted a net profit of 4.43 billion pesos in 2005.
Revenue last year grew 14.9 percent to 174.27 billion pesos.
Total expenses grew 13.7 percent to 175.96 billion pesos, owing to a 19.8-percent increase in the average cost of electricity purchased from suppliers.
Meralco is awaiting the Supreme Court's decision on its rate unbundling petition. Earlier the company said it would continue setting aside provisions, for prudential reasons, in case the court makes a final adverse ruling.
The Court of Appeals (CA) had denied Meralco's plea for a reversal of an earlier court order that stopped the power firm's tariff increase of 0.17-peso per kilowatthour, which accompanied that rate unbundling petition.
The tariff hike includes a 0.0865-peso per kwh hike in its basic distribution rates, which was implemented for 18 months before it was ordered stopped.
Meralco brought the case to the Supreme Court in March last year.
In denying Meralco's motion, the Court of Appeals had said the state-run Energy Regulatory Commission gravely abused its discretion in allowing Meralco's rate increase without appropriate public consultation.
At 10:36 am, Meralco A shares were steady at 13 pesos while the B-shares were up 0.25 peso at 20.0.
(1 dollar = 51.152 pesos)
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posted by philpower @ 7:50 AM,
