MANILA, Philippines — Power giant Manila Electric Co. (Meralco) is on track to reach at least P50 billion in earnings this year following robust results in the first half.
Meralco chairman and CEO Manuel V. Pangilinan yesterday said the company’s core profit this year is expected to grow by “low double digits” over the P45.14 billion it earned in 2024.
“The biggest contributor, the biggest growth will come from generation,” Pangilinan said. “Generation business will continue to show profitability in the coming years.”
In the first half, Meralco reported that its consolidated core net income rose by 10 percent to P25.5 billion from P23.2 billion, driven by solid contributions from the distribution and generation businesses.
Of the total earnings, the distribution utility (DU) business contributed the bulk at 54 percent, followed by the power generation segment at 37 percent.
Revenues, meanwhile, inched up by three percent to P245.2 billion from P237.5 billion on a yearly basis due to higher pass-through charges and increased electricity sales volume.
Power sales volume during the six-month period edged one percent higher to 33,778 gigawatt-hours, while DU sales volume slightly grew to 27,091 GWh.
“As we move into the second half, we remain focused on achieving key milestones that will enable us to meet our full-year profit target and business goals,” Pangilinan said.
“While energy sales volume growth has been lower than anticipated, we remain on track to meet our overall targets as power generation is expected to deliver higher-than-expected performance, offsetting the anticipated slower demand growth,” he said.
Meralco, through power investment arm Meralco PowerGen Corp. (MGen), recently secured the Department of Energy (DOE)’s reaffirmation on the status of its 1,200-megawatt coal plant in Atimonan, Quezon.
This confirms that the Atimonan plant remains outside the coverage of the existing coal moratorium policy imposed in 2020.
“As MGen plays a key role in ensuring the country’s energy security and leading the energy transition, our investment in Atimonan will help address today’s needs while preparing for tomorrow’s opportunities,” MGen president and CEO Emmanuel Rubio said.
Meralco is the country’s largest private distribution company, providing electric service to over eight million customers in Metro Manila and nearby provinces.
Be the first to comment