Presented

by
Audrey Parreo
Lance Miguel

BRIEF BACKGROUND

Brief Background

Services Offered:

core electricity
distribution service

Brief Background

Services Offered:

power generation

Brief Background

Services Offered:

retail electricity
supplier

Brief Background

Ownership:

investor
owned

Brief Background

Ownership:

Beacon Electric Asset

Holdings, Inc.
holds 49.96% of the stocks
as of December 2013

Brief Background

Ownership:

Public stock:
13.19%

Brief Background

Ownership:

CEO:
Oscar S. Reyes

Brief Background

Ownership:

Chairman:
Manny V. Pangilinan

Brief Background

Other Information:

It is the largest electric distribution utility in the Philippines.

"Meralco" is an acronym for Manila Electric Railroad And

Light COmpany.

It is Metro Manila's only electric power distributor.

They celebrated their 110th year of service last 2013.

They power 5,189,247 customers.

Product Financial
Statement Analysis

Product Financial Statement Analysis

2012 & 2013

The core net income performance of Meralco has been

profitable for 2013 with a 5% increase from the
previous year. It amounted to P17.2 billion, compared
to the P16.3 billion in 2012.

Product Financial Statement Analysis

2012 & 2013

Total current assets as of December 2013 amounted to

P107,486 million, 17% higher than last year. This was
mainly due to higher trade and other receivables and
advances made to FPM Power of P4,884 million in 2013.
Cash and cash equivalents as at December 31, 2013
amounted to P59,851 million.

Product Financial Statement Analysis

2012 & 2013

Total liabilities as at December 31, 2013 amounted to

P188,669 million, 27% higher than last year. This was
mainly due to higher trade payables resulting from the
unpaid generation costs for the supply months of
November and December 2013.

Product Financial Statement Analysis

Problems

Franchise areas are hit with unusually strong weather

disturbances affecting its operations

Not all areas in the Philippines are reached/supplied

with Electricity

Product Financial Statement Analysis

Recommendations

Expand expand especially on the services aspect of their

business, which will help the company on the long run.

Adapt and improve their utilities according to the

changes in the Philippine weather in order to avoid
power outages, additional repair expenses, and
complaints from consumers.