GM's & President's Report

Financial Operations Performance

We made record breaking energy revenue in 2012 against a backdrop of yearlong duration of power curtailments implemented by the Cooperative.  Our revenue increased by PhP 99.67 million, or 10.4%, to PhP 958. 2 million in 2012 compared to previous year. This growth is driven largely by increase in power cost, implementation of the distribution, supply, metering (DSM) rates, growth in local businesses, and increase in the number of customers, among others.

 

We continue to display high performance in terms standards established by the NEA for electric cooperatives in the financial aspect of our operations. Our collection efficiency was sustained at 100%, which can be attributed to our strict enforcement of the Cooperative’s collection/disconnection policy; aggressive collection of payments for old accounts through demand letters; and massive information, and education campaign (IEC) utilizing existing radio programs that encourage customers to pay promptly. 

 

Our average collection period (ACP), which is directly related to our high collection efficiency, continues to improve compared to the previous year. In 2012, the Cooperative’s ACP was 26.32 days compared to 26.14 days in 2011. Our ACP performance surpassed the 30-45 days standard established by the NEA.  Our ACP performance enabled us to meet operating and administrative expenses as well as able to settle financial obligations on time.

 

On key liquidity ratios, quick ratio and acid test ratio figures were at 1.266 and 1:1, respectively, showing that the ZAMSURECO-I has the ability to meet its short-term debts and the Cooperative is solvent/liquid, that is, it has more short-term assets to cover its immediate liabilities assets. These ratios met the standard established by the NEA.

 

Our net margin registers a positive net margin of 0.425% in 2012, which met the positive net margin parameter under the NEA standard.  The very low net margin is expected considering the non-profit nature of the Cooperative.

 
 
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