October 29, 2024 | 12:00am
MANILA, Philippines — Power distributor Manila Electric Co. (Meralco) is on track to reach over P43 billion in full-year earnings this year following record results as of end-September, its chairman and CEO Manuel V. Pangilinan said.
“We expect to exceed the P43-billion profit guidance we set out in the first half, paving the way for another year of record earnings,” Pangilinan told a press conference yesterday.
Meralco reported a consolidated core net income (CCNI) of P35.1 billion from January to September, 17 percent higher than the P30 billion in the same period in 2023.
The growth was propelled by a consistent increase in the sales volume of the distribution utility (DU) and stronger contributions from the power generation and retail electricity supply (RES) businesses.
The distribution business accounted for the bulk of the bottomline at 59 percent, followed by generation (25 percent), as well as RES and non-electricity businesses (16 percent).
Consolidated reported net income grew by 19 percent to P33.8 billion from P28.4 billion, while revenues edged six-percent higher to P355.4 billion from P335.2 billion.
For the third quarter alone, Meralco also posted record core earnings of P11.9 billion, up by 10 percent from P10.8 billion previously.
“Our third quarter performance held the double-digit growth in Meralco’s nine-month CCNI, driven by the continued growth momentum of the DU, power generation and RES segments,” Pangilinan said.
While sales volume during the quarter remained strong, Pangilinan expects this to taper off leading into the final quarter due to fewer operating days.
Looking ahead, Pangilinan is seeing another profitable year in 2025 on the back of organic growth and contributions from new investments, some of which are awaiting approval from the Philippine Competition Commission.
“We remain optimistic about the continued expansion of the country’s economy under the leadership and tutelage of President Marcos, with full-year economic growth forecasts hovering around six percent and the potential to outpace other Southeast Asian nations,” he added.
For the nine-month period, Meralco spent P26 billion in capital expenditures for distribution network improvement projects, development of solar plants and purchase and construction of telecommunication towers.
Meralco is the largest private distribution company in the country and provides electric service within its franchise coverage that includes Metro Manila and nearby provinces.
Within this week, the company expects to breach eight million in customer count.
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