Manila Electric eyes turnaround after April profit
Manila Electric Co. (Meralco) said on Tuesday a profitable April might signal the start of a turnaround in the fortunes of the Philippines' largest power distributor, after two years of losses.
Meralco Chairman Manuel Lopez told investors the company generated net income of about 300 million pesos (5.7 million dollars) in April after a net loss of 748 million pesos in the 2006 first quarter.
"I think this might be the start of a possible turnaround," Lopez said.
Meralco, which supplies power to about four million homes and businesses in Manila and six nearby provinces, has said it expected its sales volume to grow 2.8 percent this year from a mere 0.6 percent growth in 2005 as new malls open.
The group generated a net loss in 2005 of 350 million pesos from losses of 1.88 billion pesos in 2004.
Meralco said it would have made a profit last year if it had not covered for probable losses arising from a court case and new accounting rules.
The firm is owned by the government, conglomerate First Philippine Holdings Corp., controlled by the Lopez family, and the local unit of Spanish Union Fenosa SA
At 0250 GMT, Meralco B shares, available to foreigners, were up 1.19 percent at 21.25 pesos. Locally held Meralco A shares were flat at 13.50 pesos. Manila's main stock index was 0.07 percent higher at 2,284.45 points.
Meralco Chairman Manuel Lopez told investors the company generated net income of about 300 million pesos (5.7 million dollars) in April after a net loss of 748 million pesos in the 2006 first quarter.
"I think this might be the start of a possible turnaround," Lopez said.
Meralco, which supplies power to about four million homes and businesses in Manila and six nearby provinces, has said it expected its sales volume to grow 2.8 percent this year from a mere 0.6 percent growth in 2005 as new malls open.
The group generated a net loss in 2005 of 350 million pesos from losses of 1.88 billion pesos in 2004.
Meralco said it would have made a profit last year if it had not covered for probable losses arising from a court case and new accounting rules.
The firm is owned by the government, conglomerate First Philippine Holdings Corp., controlled by the Lopez family, and the local unit of Spanish Union Fenosa SA
At 0250 GMT, Meralco B shares, available to foreigners, were up 1.19 percent at 21.25 pesos. Locally held Meralco A shares were flat at 13.50 pesos. Manila's main stock index was 0.07 percent higher at 2,284.45 points.
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