Meralco eyes P40-billion core net income in 2024

The Manila Electric Company Inc. (Meralco) is optimistic about reaching a core net income of at least P40 billion in 2024, as it believes it can sustain the growth it recorded in its bottom line in the first quarter of the year.

At a briefing in Pasig City, Meralco chairman and chief executive officer Manuel V. Pangilinan said the company is optimistic to sustain growth in the remaining months of the year, with its business units expected to post improvements moving forward.

“As we continue to deliver stable and reliable service to our customers, we reiterate our pursuit to bring in projects of scale that will boost available generation capacity which we direly need to ensure not just the immediate, but the long-term energy security of the country,” Pangilinan said.

This comes as Meralco is looking to proceed with the full feasibility study on the possible adoption of nuclear energy in the country, after working with Ultra Safe Nuclear Cooperation (USNC) for a pre-feasibility study on micro-modular rectors (MMRs).

“Similarly, we will endeavor to implement more sustainable initiatives to cater to more underserved communities in the country. Given the foregoing, Meralco’s CCNI for the full year is expected to reach over P40.0 billion,” Pangilinan said.

Meralco reported an 11% increase in its core net income to P10.083 billion in the first quarter from P9.047 billion the previous year, while its net income climbed by 19% to P9.758 billion and reported net income by 19% to P9.597 billion.

Revenues for the quarter slipped by 1% to P104.548 billion, comprising P101.363 billion from electricity, and P3.185 billion from non-electricity. Costs and expenses fell by 5% to P93.444 billion.

NOW: Manila Electric Co. holds briefing to discuss Q1 financials.

Consolidated core net income up 11.5% to ?10.083B, while reported income rose by 18.9% to ?9.597B.

Revenues slipped 1.0% to ?104.548B, mainly due to lower pass-through charges and energy fees. $MER pic.twitter.com/c9jhNWg7kc

— Jon Viktor Cabuenas (@ViktorCabuenas) April 29, 2024

“Meralco has set the pace in the first quarter of the year with the strong performance of our businesses, which we will strive to sustain throughout the year,” Pangilinan said.

The company allocated P40 billion for its capital expenditures (capex) this year, including P24 billion for distribution utilities and P4 billion for power generation.

Meralco constructs, operates, and maintains electric distribution systems in the cities and municipalities of Bulacan, Cavite, Metro Manila, and Rizal, as well as certain areas in the provinces of Batangas, Laguna, Pampanga, and Quezon.

The firm counts as subsidiaries and associates Vantage Energy Solutions and Management Inc. and MeridianX Inc., acting as retail electricity suppliers in Luzon and the Visayas. — BM, GMA Integrated News