Meralco posts record Q3 net income at P11.8 billion

The Manila Electric Co. (Meralco) on Monday announced double-digit growth in its third-quarter earnings to hit a fresh record for the period, bringing the company closer to its goal of reaching a P40-billion core net income for the year.

In a briefing in Pasig City, Meralco chief finance officer Betty Siy-Yap said the company’s consolidated core net income (CCNI) grew by 10% to P11.888 billion, on the back of the 4% growth in sales volume, the higher contribution from global business  power plants, higher trading gains, and higher yields from fixed income placements.

This brought Meralco’s year-to-date CCNI up 17% to P35.095 billion, and reported income up 19% to P33.755 billion.  Gross revenues climbed 6% to P355.423 billion, while costs and expenses expanded by 4% to P318.990 billion.

Meralco earlier this year set a P40-billion core net income target, following the growth of its bottom line in the first quarter, which grew by 11% to P10.083 billion.

According to Meralco chairman and chief executive officer Manuel Pangilinan, sales volumes in the third quarter remained strong, as preparations for the Christmas holidays begin.

“Our third quarter performance held the double-digit growth in Meralco’s nine-month CCNI, driven by the continued growth momentum of the distribution utility (DU), power generation, and retail electricity supply (RES) segments,” he said.

“This, however, is expected to taper off leading into the fourth quarter with fewer operating days, compared with the first semester which is characterized by weather-driven consumption, increased commercial and residential sales — fueled by sustained economic growth and hybrid work and school arrangements,” Pangilinan added.

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

“Based on the strength of Meralco’s financial and operating results for the nine months accompanied by a continuing positive outlook, we expect to exceed the P43.0-billion profit guidance we set out in the first half, paving the way for another year of record earnings,” Pangilinan said.

Meralco ended September with a customer count of 7.99 million, 4% higher than the 7.77 million recorded the same period in 2023. It expects to breach the 8-million mark anytime this week.

“With our customer count seen breaching the 8-million mark, we foresee the need to be even more aggressive in investing in grid modernization projects and operational efficiency through advanced metering infrastructure that will make our network more robust, more resilient, and more intelligent,” Meralco executive vice president and chief operating officer Ronnie Aperocho said.

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. —KBK/BM, GMA Integrated News