ON THE week the Bolts punched in a twice-to-beat advantage in the PBA Governors’ Cup with a 109-90 win over Phoenix, their mother company also experienced a new 52-week high on their stock price.
The two events are obviously not connected. But Meralco’s performance in the PBA is surely cherry on top for the power distribution firm, which has been experiencing a remarkable year of growth.
On Wednesday, share prices of Meralco (MER) reached a high of P377.60.
It’s a far cry from their P263.20 per share from August of last year.
In a financial report released this month, Meralco recorded a 13.4 percent increase in consolidated core net income for the full year of 2021 compared to the previous year. Their profits, which stand at P24.6 billion from 2020’s P21.7 billion, were bolstered by more vigorous energy sales as pandemic restrictions eased and businesses soldiered on the road to recovery.
Why Meralco share price climbed to new highs
Sales from the residential sector stayed strong, thanks to the enduring work-from-home trend. But its commercial sector also rebounded in the latter half of the year, while Meralco said that industrial sales were “near” pre-pandemic levels.
Revenues, which grew 16 percent to P318.5 billion, were also buoyed up by the power distribution firm’s latest acquisition, Global Business Power Corp., which is the largest power producer outside Luzon. Meralco unit PowerGen Corp. acquired a 100 percent stake in the company last January 2021.
Meralco, which is monitored by the Energy Regulatory Commission, also reported improvements in their service.
The company, which services 55 percent of the country’s energy requirements, said that its customers experienced less sustained power interruptions throughout 2021. It also spent P16.4 billion for new connections, renewal of assets, growth of their existing load to support its goal of 100 percent electrification for the areas it covers, as well as to support the government’s Build, Build, Build program.
On Friday, as the game went underway, stocks closed at P370.
According to The Philippine Star’s Iris Gonzales: “Some brokerage houses expect Meralco’s shares to continue moving up, with some saying the price may hit P400 to P450.”
The Bolts ended the elimination round with a 7-4 record, and will face the San Miguel Beermen in the quarterfinals.
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