PLDT's power unit reports higher core earnings in first half

PLDT Communications and Energy Ventures, which holds the power interest of telecommunications giant Philippine Long Distance Telephone Co., disclosed on Tuesday that its core net income grew by nearly a fifth in the year's first half. PCEV told the Philippine Stock Exchange that its core earnings reached P1.3 billion from P1.1 billion in the same period last year or an 18-percent hike. "PCEV's income is derived mainly from its direct equity share in the net income of Manila Electric Co. and its holdings Beacon Electric Asset Holdings Inc.," the company said. Beacon is a special purpose company jointly owned by PCEV and Metro Pacific Investments Corp. whose sole purpose is to hold shares in Meralco. Beacon owns 39.1-percent interest in Meralco while PCEV directly holds 6.1-percent in the power distributor. Reported net income, meanwhile, slid two percent from P872 million to P853 million. PCEV said Meralco's consolidated reported net income for the period climbed 26 percent to P6.1 billion, boosted by the "implementation of rate adjustments..., higher volumes sold to and share of commercial customers in the overall sales mix and lower operating costs." Consolidated core net income, which excludes one-time gains, improved 35 percent to P7.8 billion. Total consolidated revenues from electricity sales, however, was three-percent lower than the amount for the same period in 2010. "Energy sales in the first six months of 2011 was one-percent lower than previous year, resulting from cooler temperatures, the lagged effect of the Japan earthquakes and a higher sales volume in 2010. Meralco still managed to grow customers by three percent, largely from the commercial and residential sectors, at its billed customer base reached 4.9 million," PCEV said. -CMA/OMG, GMA News