Meralco hits record-high P45.1-B net income in 2024

The Manila Electric Co. (Meralco) posted a 22% year-on-year growth in its consolidated core net income for 2024 to hit a record high, largely driven by the growth of its three major business segments.

In a briefing in Taguig City, Meralco reported a consolidated core net income of P45.1 billion, exceeding the P40-billion profit guidance for the year, and higher than the P37.110-billion net income the previous year.

The distribution utilities accounted for 62%, power generation for 24%, and collective renewable energy and non-power subsidiaries for 14%.

Meralco’s unregulated business posted a 38% share in the consolidated core net income, driven by the sustained strong performance of Meralco PowerGen Corp., and the growth of renewable energy units.

The unregulated business accounted for the remaining 62%, on the back of the sustained increase in demand from the commercial and residential segments.

Gross revenues for the year climbed 6% to P470.362 billion from P443.613 billion, while costs and expenses grew by 4% to P425.329 billion from P407.279 billion.

Moving forward, Meralco chairman and chief executive officer Manuel Pangilinan said he is optimistic that the company would continue to grow by double digits and hit P50 billion this year.

“Likely that as we speak, core income still double digit, but low double digit as best we can estimate,” he told reporters.

“The lowest double-digit percentage that I could say is 10%, isn’t it, so to be precise, we will be at P49.6 billion. Of course, I’m encouraging management to achieve something at least 50 billion (pesos). Round up niyo na. 400 million (pesos) lang naman di ba,” he added.

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.—LDF, GMA Integrated News