Monday, February 5, 2018

Manila Electric Company (MER)

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For the updated or exact information, you should check edge.pse.com.ph or their official website.

1. Company Information
Company Name
Manila Electric Company (MER)
Sector
Industrial
Incorporation Date
May 07, 1919
Subsector
Electricity, Energy, Power & Water
Number of employees
5,569 (Group Total)
Board of Directors
Chairman: Manuel V. Pangilinan (MPI)
Other Directors: Oscar S. Reyes, James L. Go, John L. Gokongwei, Jr., Lance Y. Gokongwei, Manuel M. Lopez(LPZ), Pedro E. Roxas(ROX)
Website / E-mail
http://www.meralco.com.ph / corcom@meralco.com.ph
2. Stock Information
Total Assets
304,553,000,000
Market Capitalization
364,052,881,715.00
Total Liabilities
233,039,000,000
Outstanding Shares
1,127,098,705
Retained Earnings
49,524,000,000
Listed Shares
1,127,092,509
Listing Date
Jan 08, 1992
Issued Shares
1,127,271,117
Board Lot
10
Free Float Level (%)
20.77%
Par Value
10.00
Foreign Ownership Limit
40%
3. Major Stock Holders (common shares)
BEACON ELECTRIC ASSET HOLDINGS, INC.
JG SUMMIT HOLDINGS, INC
PCD NOMINEE CORPORATION (FILIPINO)
METRO PACIFIC INVESTMENTS CORPORATION
PCD NOMINEE CORPORATION (FOREIGNER)
FIRST PHILIPPINE HOLDINGS CORPORATION
34.96%
29.56%
12.99%
10.50%
4.29%
3.94%
4. Company Descriptions and Business Development
Notes
1. High Dividend Stock
2. Related companies: MPI, TEL
Overview
Manila Electric Company, also known as MERALCO, is a private distribution utility (DU), which holds a congressional franchise under Republic Act (“RA”) No. 9209. The franchise valid through June 28, 2028 to construct, operate, and maintain the electric distribution system in
the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal and certain cities, municipalities, and barangays in the provinces of  Batangas, Laguna, Pampanga, and Quezon. MERALCO is the Philippines’ largest electric power distribution company, with franchise area covering 9,685 square kilometers. It provides power to more than 6 million customer accounts in 36 cities and 75 municipalities. The franchise area accounts for more than 50% of the country’s Gross Domestic Product (GDP).
MERALCO has a unit for its participation in retail electricity supply (“RES”). The MERALCO local RES, otherwise known as MPower, is a business unit within MERALCO.

Business
The principal business of MERALCO is the distribution and sale of electric energy through its distribution network facilities in its franchise area. It consists of power distribution, power generation, RES and other services.

Sales contribution per customer segment in 2016
Segment
Sales Percentage
No. of Customers
Residential
31.00%
5,537
Commercial
39.53%
486
Industrial
29.14%
10
Streetlights
0.33%
5

As of 2016, Generation charge accounts for 59% and Distribution accounts for 23% of total electricity revenues.

Subsidiaries / Associates / Affiliates / Joint Ventures
Meralco Industrial Engineering Services Corporation (“MIESCOR”) is 99%-owned by MERALCO, is engaged in engineering, procurement, construction and maintenance activities related to power generation, transmission and distribution, as well as industrial plants, water resources and telecommunications.
Corporate Information Solutions, Inc. (“CIS”) is a wholly-owned subsidiary of MERALCO.
CIS, through CIS Bayad Center, Inc. (“Bayad Center”), is in the business of bills payment collection.
Meralco Energy, Inc. (“MEI”), operating as MServ, is a wholly-owned subsidiary, services like energy-saving alternatives, power quality and power factor services.
Clark Electric Distribution Corporation (“CEDC”) is 65%-owned by MERALCO.
MERALCO PowerGen Corporation (“MGen”) is a wholly owned subsidiary, to develop, build, own and operate a diversified power portfolio. MGen has shares in the following power plants.
  ● San Buenaventura Power Ltd. Co.’s (“SBPL”): 455 MW (net) supercritical coal-fired power plant. Expected commercial operation is in 2019.
  ● Redondo Peninsula Energy, Inc. (“RP Energy”): 2 x 300 MW (net) coal-fired power plant. Expected commercial operation is in 2020.
  ● Atimonan One Energy, Inc. (“A1E”): Developing 2 x 600 MW ultra supercritical coal-fired power plant.
  ● St. Raphael Power Generation Corporation (“SRPGC”): Will develop 2 x 350 MW sub-critical pulverized coal-fired power plant. It’s a 50-50 JV with Semirara Mining and Power Corporation.
  ● Mariveles Power Generation Corporation (“MPGC”): Will develop a 4 x 132 MW coal-fired power plant. It’s a JV with SMC Global Power Holdings Corp(51% holder).
MGen also has a 28% effective equity interest in PacificLight Power Pte. Ltd. (“PacificLight”) that has been operating its 2 x 400 MW in Singapore.
MSpectrum, Inc. (“Spectrum”) is a wholly-owned subsidiary of MERALCO is for the entry into the renewable energy space and other technologies.
MRAIL, Inc. (“MRail”) provides rail maintenance service.

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