Manila Electric Loses $2 Billion Value as Reform Plan Weighs

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Or sign-in if you have an account.4idesd4opovi2)(22(um124x_media_dl_1.png Bloomberg(Bloomberg) — Manila Electric Co. shares extended their decline to a fourth day, erasing about 127 billion pesos ($2 billion) in market capitalization amid growing concern that a proposal to eliminate a power charge for consumers could hurt the utility’s earnings.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe stock fell as much as 12% on Thursday, the largest intraday drop since March 2020. Philippine President Ferdinand Marcos Jr. on late Monday proposed to end an unpopular charge where power consumers pay for electricity lost during delivery. Uncertainty over the proposed removal of the power charge is clouding the outlook for Manila Electric, Philippines’ largest power distributor, with questions remaining over whether utility firms will be allowed to recover the costs through another mechanism. Manuel Pangilinan, the company’s chairman and chief executive officer, on Wednesday said the move would cost the industry “tens of billions of pesos.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again“The sentiment now is really driven by the hot mess after the State of the Nation Address remarks on system loss charges,” said Jasper Timoteo Ondap, an equity analyst at Regina Capital Development in Manila. The planned reform has “sparked debates and projected negative financial implications” for electricity producers.Manila Electric reported an 11% year-on-year increase in net income for the first half of the year, though Pangilinan said geopolitical developments in the Middle East presents a headwind for the local energy industry. The Philippines is a fuel import-dependent country. JPMorgan Chase & Co. analyst Jelline Gaza cut recommendation on the company to neutral from overweight, citing earnings and sales that trailed estimates.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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