Meralco’s core net income jumps 21% in H1

Thanks to higher sales volumes of the distribution utility.

The Philippines’ Manila Electric Company (Meralco) has reported a 21% increase in its core net income in the first half (H1) of the year as the dry season experienced in the past months increased sales volumes of the distribution utility, as well as sales in the second quarter due to higher availability of power generation plants.

In a bourse filing, the company said its core earnings increased to $395.94m (PHP23.21b) from $327.66m (PHP19.21b) a year ago. Of the total amount, the distribution business accounted for the biggest share of 55%, followed by power generation that accounted for 27%, and retail electricity supply and non-electricity businesses that accounted for 18%.

Consolidated net income also grew 26% to $382.86m (PHP22.4b), whilst revenues grew 6% to $4.05b (PHP237.5b).

The company said its total energy sales volumes in H1 rose to 26,954 gigawatt-hours (GWh) from 24,792 GWh as volumes of Meralco and Clark Electric Distribution Corporation increased by 9% and 7%, respectively.

Meralco also said its second quarter sales hit a new record, boosting the sales volume in the first half. Monthly volumes breached the 5,000 GWh-level in May driven by the double-digit growth in residential and commercial segments. Demand in the Meralco franchise area peaked at 9,323 megawatts (MW) in April, up by 10% from the 8,438 MW peak demand experienced in May 2023.

As of end-June, the company said its commercial units accounted for the biggest share of 37% in the energy sales mix, whilst residential and industrial accounted for 36% and 26%, respectively.

Meralco Chairman and CEO Manuel Pangilinan expects the company’s core net income to reach $733.63m (PHP43b) by the end of the year following the latest financial results.

“With the steady growth trajectory of the economy, we are satisfied that Meralco will sustain its robust performance throughout the year,” he said. 

$1 = PHP58.61