Manny V. Pangilinan-led Manila Electric Company (Meralco) reported an increase in its consolidated core net income (CCNI), fueled by higher sales volumes and improved yields in its distribution, generation, and retail electricity supply businesses.
In a briefing on Monday, Oct. 28, Meralco said that its CCNI increased by 17 percent to P35.1 billion from January to September 2024 compared to P30 billion in the same period last year.
At end-September, the distribution utility business had a 59 percent share of P20.5 billion, while 25 percent of the CCNI came from power generation with P8.9 billion.
The remaining 16 percent of Meralco’s CCNI came from RES and non-electricity businesses at P5.7 billion.
The distribution utility giant reported a marginal increase in its consolidated revenues, from P335.2 billion last year to P355.4 billion, which was due to the DU’s sales and transmission charge hike.
Meralco noted that the DU consolidated energy sales volumes hiked from 38,164 gigawatt hours (GWh) to 40,872 GWh.
Most of its capital expenditures (CAPEX) were used for distribution network projects such as new connections, asset renewals, load growth projects, and more.
According to the company, P15.3 billion out of its P26 billion CAPEX were utilized during this period.
Additionally, the budget was allocated for solar power plant developments and telco tower business facilities.
One of its CAPEX projects finished in the third quarter was the gas-insulated switchgear in the country’s first full indoor substation, located in San Joaquin, Pasig City.
Two of its projects completed were the Milagrosa Switching Station in Carmelray Industrial Park II in Calamba, Laguna, and a third 300 megavolt-ampere (MWA) power transformer in Bocaue, Bulacan.
Due to the facilities maintenance at DU, which includes work on overloaded transformers, preparations for the rainy season, increased costs for software maintenance and subscriptions, and the consolidation of expenses from SP New Energy Corporation (SPNEC), Meralco's operating expenses (OPEX) rose by eight percent to P28.8 billion.
Manny V. Pangilinan, Meralco’s chairman and chief executive officer (CEO), stated that the company is experiencing strong sales, particularly with the Christmas season approaching.
“Sales volumes in the third quarter remained strong as preparations for the Christmas holidays begin. 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,” he stated.
Pangilinan added that the Meralco PowerGen Corp. (MGen) was able to provide a significant contribution to the company’s CCNI due to its higher plant availability.
“Our RES business continues to thrive in an extremely competitive retail market and contributed higher year-to-date CCNI with the trading gains realized,” he shared.