TransCo hikes income by 9.53%
Manila (25 September) -- National Transmission Corporation (TransCo) announced that the prospect of exceeding last year's net income of P16.17 billion is strong as the state-owned firm already posted a net income of P10.84 billion as of end-July of 2006.
From January to July this year, TransCo recorded a net income of P943 million representing a 9.53% rise over that of the same period last year.
TransCo's latest financial report also shows its net utility revenue increasing by 8.4% to P15.54 billion for the seven-month period compared to the previous year's P14.33 billion.
Operating expenses also decreased by 26.5% or P1.70 billion from the budgeted amount of P6.41 billion while TransCo's operating ratio improved to 30.31% from last year's figure of 30.80%.
TransCo President and CEO Dr. Alan T. Ortiz said the period's strong financial performance was primarily due to the implementation effective April 2006 of the interim Maximum Allowable Revenue (MAR) for the current year as approved by the Energy Regulatory Commission.
"This consistently favorable financial statements during the past years make TransCo a good investment prospect for the future concessionaire," he said.
He also attributed the favorable financials to the collaborative effort of management and its more than 3,700-strong workforce as they gear up for TransCo's eventual privatization.
"Over the years, we have worked hard to become at par with world-class organizations. Practically all our units have adopted internationally-recognized quality management systems to make our processes more efficient and customer-oriented," he said.
TransCo has also been cited as the best GOCC in terms of corporate governance by the Institute of Corporate Directors.
"And we will not rest on our laurels. We will accomplish more in the coming months and years. We are feverishly building more transmission lines, substations and undertaking system improvement programs with the end in view of making electricity reliable and affordable for all, he stressed. (PIA-MMIO) [top]