Philippines’ Meralco net income climbs 13% in 2021

This was driven by energy sales volumes that nearly hit its pre-pandemic levels.

Philippine-based Manila Electric Company (Meralco) reported its consolidated core net income (CCNI) rose 13% to P24.6b in 2021 as energy sales volumes returned nearly to its pre-pandemic level.

This is higher than the 21.7b income recorded in 2020, the company noted. Whilst its core earnings per share reached P21.83, up by 13% in the previous year.

Sales volume rose 6% to 46,073 gigawatt-hour (GWh) from 43,572GWh in the previous year, which Meralco attributed to the sustained residential consumption, ramp-up in commercial volumes amidst eased quarantine restrictions.  

Meralco also reported its revenues increased by 16% to P318.5b from P275.3b, largely due to its electricity revenues that saw a 15% rise to P309.2b over the same period.

“Our excellent operational and financial performance in 2021 reflects Meralco’s continuing efforts to invest in customer-centric innovations and in our digital transformation journey to deliver quality and reliable service to our more than 7 million customers, in the midst of a continuing pandemic,” Meralco Chairman Manuel Pangilinan said.  

Moreover, average retail rate inched up by 4% to P8.24 per kilowatt-hour due to higher pass-through charges.

Generation and transmission charges, meanwhile, went up by 7%. It accounted for 67% of the retail price.

Feed-in-Tariff allowance increased 77% due to the higher FIT-ALL rate of P0.0983 per kWh, implemented since January 2021; whilst subsidies, taxes, and other charges, which accounted for 14% of the retail price, was stable.

($1 = P51.42)