December 5, 2023

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Power companies seen to post mixed results for Q1

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ENERGY companies are expected to deliver mixed results for the first quarter (Q1), according to analysts, with one fund expert saying that the period tends to be generally weaker for the sector.

“From a seasonality standpoint, the first quarter tends to be generally weaker for power companies than other quarters due to cooler weather (less public power consumption) and lack of rain (vital for hydro plants),” Marvin V. Fausto, president of COL Investment Management, Inc., said in an e-mail to BusinessWorld on April 5.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said power generation companies are expected to see a low single-digit increase or decrease in their net income depending on the contracted capacity mix.

For the first quarter and for the full year 2023, energy companies are expected to deliver a year-on-year increase in revenues, while bottomline performance “could go both ways,” he said in a phone message on April 3.

Meanwhile, RCBC Securities, Inc. head of research Ma. Jidgette Velasco said that the energy sector has a somewhat bleak outlook for this year.

“For 2023, we expect a generally flattish year in earnings results as the power supply outlook remains bleak with the lack of additional power supply,” Ms. Velasco said in an e-mail on April 4.

Last year, almost all of the country’s listed energy companies delivered higher income due to increasing demand, higher electricity sales, and strong revenues.

In 2022, Semirara Mining and Power Corp. posted a record-high net income of P39.9 billion more than double the P16.2 billion recorded a year earlier, on strong domestic coal shipments and higher electricity sales at the spot market.

Manila Electric Co. (Meralco) registered a P27.11 billion consolidated core net income, up 10.2% from P24.61 billion a year earlier on strong energy sales.

Aboitiz Power Corp. reported a 27.4% increase in core net income to P26.5 billion in 2022 from P20.8 billion a year earlier due to…


2023-04-10 12:06:48

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