By Chito Lozada
The Daily Tribune
Dominant power distributor Manila Electric Co. (MER) shares remain attractive as a result of recent diversifications and it may even give a 35.44 percent a year upside from its current trading price of P274 to around P370 before the year ends.
Regina Capital Development Corp. (RCDC) said in a report that Meralco shares get a positive outlook despite the release of its first quarter results showing a 7.59 percent year-on-year decline in revenues to P64.71 billion which was attributed to energy sales tempered by mobility restrictions.
Energy sales slipped by 3.73 percent from a year ago to 10,473 gigawatthour (gWh) despite the early signs of recovery in the Industrial segment and stable performance in the residential unit. The commercial segment remains challenged since demand from the education (down 59 percent), restaurants (-27 percent), real estate and hotel (-21 percent), transport (-16 percent), and retail (-15 percent) were still soft.
RCDC said lower costs were enough to lift MER’s net income. It earned P4.36 billion (up 64.23 percent from a year ago) during the first quarter.
Projects onstream
MER also has completed several power projects, including the Pulilan Bank expansion that add a new 50 megavolt amperes (MVA) Bank.
The new equipment provides better voltage regulation and switching flexibility.
The firm also replaced or expanded several substations and power transformers.
Meanwhile, the firm’s renewable energy (RE) arm is also starting to focus more on renewable energy projects. MGreen is eyeing to have 1,500 megawatts of renewable energy RE projects in the next five to seven years.
https://tribune.net.ph/index.php/2021/05/24/meralco-secures-favorable-outlook/