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PSE Trading | MER Manila Electric Company

edited April 2019 in Banking and Finance
Formerly MERALCO (MER) - Trader's Lounge Bluechips & Big Caps Section

Company Website : http://www.meralco.com.ph/

Corporate Profile
Meralco marches on to its 108th year of service in 2011. Consistently in the list of the Philippines’ top five corporations and cited among Asia’s finest, Meralco today serves over 4.8 million residential, commercial and industrial customers. It is strategically located to serve the country’s center of commerce and industry and its hub of government services and infrastructures. It services about 30 manufacturing economic zones, which also compete in the global market. Likewise, the Company caters to providers of outsourced business processes, both domestic and international.


Meralco’s 9,337 sq. km. franchise area covers 31 cities and 80 municipalities including Metro Manila, the entire provinces of Bulacan, Rizal and Cavite; parts of the provinces of Laguna, Quezon, Batangas and Pampanga. Electrification level in the franchise area is 99%.

MERALCO is an investor-owned electric utility serving roughly a quarter of the estimated 94 million population of the Republic of the Philippines.

It was organized as the Manila Electric Railroad and Light Company 107 years ago in 1903 to provide electric light and power and an electric street railway system to Manila and its suburbs. The facilities that Meralco built to provide these two services represented for many years the largest single investment of American private capital and know-how in the whole of East Asia.

For a little more than four decades, Meralco provided Manilans their first modern mass public transportation system with electric streetcars which in the twenties were supplemented by busses. World War II destroyed the railway system beyond rehabilitation and Meralco gave up its transportation business in 1948, concentrating thenceforth on providing electricity. The electric service it provided powered much of the postwar rehabilitation and early industrialization of the young republic that became independent in 1946.

In 1961, in a move considered daring at that time, a group of Filipino investors led by the entrepreneur Eugenio Lopez Sr. bought Meralco from its American owners, the first major American enterprise to be so 'Filipinized.' During the decade that followed, the new Filipino management built electric generating and distributing facilities at an unprecedented pace to meet the burgeoning needs of its franchise area; this was made possible by earning the confidence of international credit institutions like the Ex-Im Bank of the United States, the Ex-Im Bank of Japan, the International Finance Corporation (IFC), Kreditanstalt fur Wiederaufbau (KFW), and other banks, insurance companies, and major American, German and Japanese suppliers.

Meralco was the first Philippine company to issue mortgage trust indenture bonds successfully in the US financial market on Wall Street. Meanwhile, an enlightened human resource management regime ensured industrial peace and employee loyalty at home. In 1969, Meralco became the very first billion-peso company in the Philippines. This was all the more remarkable because much of it had been achieved without recourse to government guarantees.


  • DCL #3270: Meralco press release: "Financial and operating results..." - 1 (PSE - 04/22/2013)

    Manila Electric Company ("Meralco" or the "Company") (PSE: MER) today announced that its unaudited consolidated Core Net Income, which excludes one-time, exceptional charges, for the three months ended March 31, 2013 amounted to Pesos 4.0 billion. Consolidated Reported Net Income for the period stood at also Pesos 4.0 billion. Core and Reported Earnings per Share were at Pesos 3.570 for the three months ended March 31, 2013 was at Pesos 3.571. The sustained increase in the number of new customer accounts, the faster energization of new property developments such as residential and office condominiums - plus the recently opened major hotel-casino complex at the Pagcor Entertainment City and increased domestic consumption driven by healthy overseas Filipino workers' remittances and Business Process Outsourcing inflows - represented the primary contributory factors to the net growth in electricity sales. The 1% increase in volume reflected the volume of an additional day in February 2012, absent which, volume growth on a normalized basis would have been in excess of 2%. The number of billed customers increased to more than 5.2 million with the additional 165 thousand customer accounts since March 2012. Overall revenue from sale of electricity was lower year-on-year as the Company began to realize the full period effect of the new Power Sales Agreements ("PSAs"), which resulted in lower generation charges to Meralco customers. These PSAs were provisionally approved by the Energy Regulatory Commission ("ERC") in December 2012. Income from related businesses and contribution from subsidiaries totaled Pesos 0.7 billion, an increase of 30% compared with the same period in 2012. Consolidated revenues in 2013 were lower by 1% at Pesos 64.8 billion compared with Pesos 65.6 billion during the same period last year. Consolidated electric revenues remained at 99% or Pesos 64.2 billion of total revenues. The lower electric revenues were largely due to the effect of lower pass-through charges during the 3-month period, slightly offset by the moderate increase in energy sales volume.
  • Source : click here

    MANILA, Philippines - The country’s biggest power retailer Manila Electric Co. (Meralco) together with its consortium partners in Nigeria is expected to take over two power firms in the African country by the third quarter of the year, top company officials said.

    “The consortium wants to take over by the third quarter of the year,” Meralco president Oscar Reyes said in an interview.

    The consortium, led by Lagos-based Integrated Energy Distribution and Marketing Ltd. (IEDM), tapped Meralco as technical partner for two power firms privatized by the Federal Republic of Nigeria.

    “We partnered with IEDM. It is essentially a technical service agreement because IEDM doesn’t have any background experience in distribution. This is for two distribution utilities in Nigeria,” said Meralco chairman Manuel V. Pangilinan.

    He said representatives from the consortium are expected to come to the Philippines within the next few days to thresh out other necessary details pertaining to the deal.

    Pangilinan said Meralco has taken a five percent equity in IEDM, amounting to $31,500, and was given the option to raise its stake to up to 20 percent.

    “We are open to (raising to 20 percent) but we’d like to take a look at it on the point of view of being more as a service provider to IEDM,” he told reporters, adding that Meralco isn’t prepared yet to make “significant” investments in Nigeria.

    Nevertheless, Meralco views the deal in Africa as a way to bring the power retailer brand overseas.

    “We are looking at it as a platform to having Meralco recognized overseas,” Reyes said.

    He said IEDM approached Meralco in 2011 after it was referred by a European advisory firm.

    “We were referred to them by a major European energy advisory company. Then they came over. They liked what they saw and asked us to be their technical partner,” he said.

    Pangilinan said that if Meralco decides to raise its investments in Nigeria, it wouldn’t be as significant as its Singapore deal.

    Early this month, Meralco completed the purchase of a 70 percent stake in an 800-megawatt liquefied natural gas project in Singapore for $488 million.

    Meralco subsidiary PowerGen Corp. and First Pacific Co. Ltd. have formed a joint venture, FPM Power Holdings Ltd. (FPMP) to acquire 70 percent of GMR Energy (Singapore).

    The remaining 30 percent is owned by Malaysian energy giant Petronas.
  • DCL #3270: Meralco press release: "Financial and operating results..." - 2 (PSE - 04/22/2013)

    The overall combined generation costs and system loss charged to customers for the first quarter of 20 13 were lower at Pesos 5.79 per kWh (1% less) despite the additional charges for Generation Rate Adjustment Mechanism (GRAM) and Incremental Currency Exchange Rate Adjustment (ICERA) of the National Power Corporation (NPC) that was reflected in end-users' bills beginning April 2012.

    Transmission charge was at Pesos 0.89 per kWh or 16% lower compared with 2012. Meralco's distribution rate stood at Pesos 1.64 per kWh, approximating the level of the approved Maximum Average Price (MAP) for Regulatory Year (RY) 2013 of Pesos 1.6303. For the first quarter of2013, the overall average retail rate of Meralco amounted to Pesos 9.32 per kWh, Pesos 0.03 or 0.3% lower compared with that in 2012.

    The average blended purchased power cost for the first three months of 2013 was at Pesos 6.09 per kWh, 5% lower than 2012. Power purchased under long-term power supply contracts with Independent Power Producers (IPPs) including the new long-term PSAs accounted for 92% of total volume purchased at an average price of Pesos 4.64 per kWh for the first quarter of 2013. The balance was sourced from the Wholesale Electricity Spot Market (WESM) and the residual National Power Corporation Transition Supply Contracts (TSCs), which were allowed to be further extended up to June 25, 2013.

    Purchased power cost of WESM purchases, inclusive of line rental charges, for the first quarter of 2013 was at an average rate of Pesos 26.65 per kWh, Pesos 17.64 higher than the rate of Pesos 9.01 in 2012. The lower generation charges in the first quarter of 2013 is attributable to the new competitively structured and priced PSAs, which were implemented beginning January, as provisionally approved by the ERC.

    Of the eight (8) plants with which Meralco has long-term contracts, three (3) were operated at plant capacity factors beyond 80%, resulting in lower average PSA prices. On the other hand, the coal-fired plants of Masinloc Power Partners Co. Ltd. (AES Masinloc, Quezon Power (Philippines) Limited, Company ("QPPL"), Therma Luzon, Inc. (TLI- Pagbilao) coal-fired plants and the Sta. Rita gas plant of First Gas Power Corporation were either on scheduled preventive maintenance or on forced outage for certain periods in the quarter.
  • DCL #3270: Meralco press release: "Financial and operating results..." - 3 (PSE - 04/22/2013)

    This resulted in lower power plant capacity factors and consequently, the slightly higher purchased power costs from these plants. Operating and maintenance expenses decreased by 2% to Pesos 3,941 million compared with Pesos 4,030 million in 2012. Labor, labor-related and contracted services remain to be the largest operating cash costs of Meralco. All other expense items were very well contained.

    Non-electric revenue was derived mainly from electric pole rental billings, third party bills payment collection services of CIS Bayad Center, Inc. (Bayad Center), and data transport and connectivity services of eMeralco Ventures, Inc. (eMVI), among others. These increased by 30% to Pesos 0.7 billion due to pole rental rate adjustments, higher volume of transactions of Bayad Center and increased projects of eMVI. Consolidated EBITDA was higher at Pesos 7.1 billion, equivalent to a Consolidated EBITDA margin of 11% on consolidated revenues. Consolidated capital expenditures for the first quarter of 2013 totaled Pesos 1.7 billion, 19% higher than the capital expenditures in 2012.

    Completed capital expenditures include the uprating of the Malaya Substation with an 83MVA transformer, which will enhance the switching flexibility in the event of an outage in the New Teresa Substation power transformer. In addition, the 115kV sub-transmission line linking the First Cavite Industrial Estate and Rosario Substation in Cavite was completed in February 2013, enhancing the power reliability and adequacy situation of the Rosario Substation, which serves the Cavite Economic Zone.

    Free cash flow at the end of the first quarter of 2013, inclusive of the Pesos 9.0 billion invested in the 40% participation of MERALCO PowerGen Corporation (MGen) in FPM Power Limited's (FPM) acquisition of a 70%-interest in GMR Energy (Singapore) Pte. Ltd. (GMRE), amounting to Pesos 9.1 billion, was 27% higher than that at the end of the first quarter of 2012.
  • Monthly Charts as of 26 April 2013
  • DCL #3270: Meralco press release: "Financial and operating results..." - 4

    Free cash flow, net of this investment in FPM for GMRE, is still positive at Pesos 70 million as at end of the first quarter of 2013. Total cash and cash equivalents as at March 31, 2013 amounted to Pesos 60.9 billion.

    The amount of Pesos 6.9 billion is allocated for the payment of Pesos 6.10 per share final cash dividend out of 2012 Core Net Income, declared by the Board of Directors last February 25, 2013 to all shareholders as of record date March 26, 2013, and payable on April 24, 2013. In the first quarter of 2013, Meralco drew a US$ 10.0 million short-term loan from a foreign bank to finance the initial funding requirements of the Company's share in FPM to secure its bid offer.

    The Company remains committed to securing the relevant financing of the investment it has made in FPM for GMRE. Consolidated gross debt balance as at the end of the first quarter of 2013 amounted to Pesos 25.0 billion. Gross Debt to EBITDA stood at 0.88x. Meralco's net debt position remains negative. Total principal debt repayments and refunds, inclusive of financial charges, amounted to Pesos 2.5 billion.

    Other than the US$10.0 million short-term loan, the Company's debts are denominated in Philippine peso with maturities comfortably spread out up to 2022. Of the consolidated debt balance, current maturities and notes payable amount to Pesos 4.5 billion. "We continue to focus on the execution of our strategic growth plans to deliver sustainable long-term value to all stakeholders. We have responded to the challenges of our growing customer base for quality electric service at reasonable rates, the performance requirements of our business and the enhanced standards of governance.

    We will continue to pursue opportunities closely aligned with our core business, working with our customers to find technology and innovation-driven solutions to enhance customer satisfaction. Even as we focus on assuring that we outperform on our franchise obligations and regulatory metrics, we remain alert to profitable growth opportunities beyond our franchise area and overseas.
  • DCL #3270: Meralco press release: "Financial and operating results..." - 5

    The recent successful closing in record time of a major stake in a new 2x400 MW ***-fired power plant nearing completion in Singapore represents a strategic investment, which will be value and income accretive by next year, both to the Company and to the country," said Manuel V. Pangilinan, Chairman.
  • Weekly Charts as of 2 May 2013
  • Monthly Charts as of 6 May 2013
  • Monthly Charts as of 8 May 2013
  • San Miguel open to selling stake in Meralco - Ang

    MANILA, Philippines - San Miguel Corp. president Ramon S. Ang said the company is open to selling its 36% interest in Manila Electric Co. (Meralco) if there is an offer.

    San Miguel president and chief operating office Ramon S. Ang said the company is not actively selling its stake in the Philippines’ biggest electricity distributor.

    "But if you tell me somebody or someone wants to buy (our Meralco) shares comes forward at whatever price. I can easily decide on that in five minutes. I will give them terms," Ang said.

    As of Thursday trading, Meralco closed at P388.80.

    Earlier, Metro Pacific Investments Corp.'s Joey Lim said the company, which controls Meralco, is happy with its stake and is not looking to increase it. Beacon Asset Holdings, the holding company for the controlling stake in Meralco, owns at least 48.02% of the power distributor.

  • Monthly Charts as of 15 May 2013
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