Message of the President during the 2017 Annual Stockholders Meeting
To our ninety-seven (97) strong Stockholders, the Electric Cooperative (EC) – Investors and NRECA Electricity for Progress (NEP), to our Guest Speaker, NEA Administrator Edgardo Masongsong, to our EC representatives and guests, a pleasant morning!
The year 2016 has been a great year for the Rural Electrification Financing Corporation (REFC), and its wholly-owned subsidiary, the Rural Electrification Trading Corporation (RETC), insofar as our operational accomplishments are concerned. This is reflected in the Annual Report which we distributed to you and I encourage you to take the time to read it so that you would be informed on the status of your very own Corporation.
I wish to begin by acknowledging the very people who made these accomplishments possible, the dedicated employees who, despite its lean number, have exerted their best efforts to make the 2016 operations profitable. “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has,” says Margaret Mead, an American cultural anthropologist. To paraphrase, I would say, committed employees can change the corporate world. Commitment is the offshoot of passion. And the passion we put into our work makes us enjoy in what we do. When we enjoy our work we perform our best and our work no longer becomes work but a fulfillment of ourselves. That is why it is self-gratifying when we realize that our little effort has made difference not only in the Company we work for but also, and more importantly, in the lives of people we served.
Likewise, my gratitude goes to the Management and the Board of Directors, whose invaluable leadership and guidance were very indispensable to make the REFC and RETC unrelenting in their performance all these years. Thanks to their teamwork, which make the employees rally behind them in every endeavor, they embody the vital element for every company to succeed. As Helen Keller aptly puts it: “Alone we can do so little; together we can do so much.” Every successes we achieved thus far have and always been a team effort. I appreciate the fact that we were able to set aside our differences to work for a common goal for the best interest of our Corporation. And I borrow a quote from Joseph Vincent Paterno, an American college football player, and later athletic director and coach, who said: “When a team outgrows individual performance and learns team confidence, excellence becomes a reality.”
No doubt, there can be no REFC/RETC success story to talk about today without you, our dear Stockholders, joining hands together sixteen (16) years ago. The unwavering support and continued patronage of the member ECs are the reason our very own corporation stands to this day. Coming together with a shared purpose, a common vision, which was to make a difference in the Rural Electrification Sector, was back then called for after the EPIRA was passed into law. But now it is even more imperative for us to stand together amidst the new challenges we all face in the industry. The gains of technology is taking us by storm. We cannot rest on our laurels, instead, look for innovative ways to make the ECs’ existence still relevant. We only have to continue working together, mindful that, to borrow J.K. Rowling’s words: “we are only as strong as we are united, as weak as we are divided.”
In 2016, we have surpassed our 2015 operations by 45% higher by registering a revenue of Php34.073 Million and service fees collected amounting to Php2.613 Million. We achieved a positive retained earnings for the 9th consecutive year, which enabled us to declare dividends in the amount of Php12.067 Million for our stockholders, broken down as Php6,034,000 in stocks and Php6,033,286 in cash dividends. Our loan releases for the year amounted to Php241.682 Million, the highest so far in REFC’s operations based on year-on-year comparison, surpassing all loan releases of previous years. We funded various projects crucial to the efficiency improvement of our Borrower EC-Investors, from capital expenditures (CapEx) to commodity loans coursed through our subsidiary, the RETC. And we have grown our number from erstwhile 83 member EC-Investors in 2015 to 92 including NEP by end of 2016.
We have also seen change in the Administration of our country’s affairs in 2016. It is worth the mention as our member-ECs have again shown its commitment of delivering a reliable power service to their areas of coverage during the exercise of our people’s right of suffrage. And we all know that the current Administration has been catapulted into power through a landslide victory with the slogan that change is coming. As partners in countryside development, we have to embrace this change, align our efforts with the new NEA leadership’s thrusts and perform our best. I believe and I am convinced that the REFC/RETC is ready to face the challenges of the times and will continue to make a difference in the Rural Electrification Sector.
Finally, it is for me a great privilege to be part of the Board of Directors since 2000, representing CAGELCO II, which was one of the incorporators. And I am honored to have been at the helm of this Corporation for the past eight (8) years since 2008. I am very much grateful for the opportunity given me to be at the service of REFC/RETC. And, this being my last message as President of this remarkable institution, allow me to quote Jean-Baptiste Massieu, one of the pioneers in the field of deaf education, who said: “Gratitude is the memory of the heart.” Needless to say, I thank all of you, my REFC/RETC family, for making my sixteen (16) years of service a wholesome experience. I say, carry on.