Strong demand, strategic investments propel Meralco's net income up 22% in 2024

Manila Electric Company (Meralco) reported a 22 percent increase in consolidated core net income (CCNI) for 2024.

In a briefing on Monday, Feb. 24, Meralco said its CCNI rose to ₱45.1 billion from ₱37.11 billion in the previous year.

According to Meralco, last year’s growth was driven by the distribution utility’s (DU) expansion, power generation performance, and improvements in the retail electricity supply (RES) business.

The company’s consolidated revenues rose by six percent to ₱470 billion, fueled by increased DU volumes and higher pass-through transmission charges.

Consolidated capital expenditures (capex) reached ₱44.7 billion, with ₱24.7 billion allocated to distribution network projects, including new connections, asset renewals, and load growth initiatives. Other investments included the development and land acquisition for renewable energy (RE) assets, and the acquisition and construction of additional towers by MIESCOR Infrastructure Development Corporation (MIDC).

DU sales volume increased by six percent to 54,325 gigawatt-hours (GWh) from 51,044 GWh, supported by growth in the commercial and residential segments.

The commercial segment accounted for 38 percent of the sales mix, at 20,406 GWh, up from 19,005 GWh in the previous year.

Meralco attributed this growth to business expansion activities, such as mall redevelopment, new store openings, and increased office occupancy rates.

Hotels, educational institutions, and restaurants also experienced higher demand due to increased in-person activities and tourism, coupled with greater air conditioning usage.

Residential energy sales climbed by nine percent, from 17,781 GWh to 19,455 GWh. Ferdinand Geluz, Meralco’s senior vice president and chief revenue officer, attributed this to warmer temperatures from the extended El Niño, leading to increased consumption of cooling devices.

The industrial segment saw nearly stagnant growth, with volumes at 14,318 GWh.

The total customer count reached 8.04 million, up from 7.83 million in 2023.

Meralco completed 18 capex projects in its distribution network, including four gas-insulated switchgear (GIS) substations.

Looking ahead to 2025, Ronnie L. Aperocho, Meralco’s executive vice president and chief operating officer, outlined plans to implement advanced metering infrastructure (AMI), intensify facility replacement works, and increase rooftop solar penetration.

Manuel V. Pangilinan, chairman and chief executive officer of Meralco, acknowledged uncertainties for 2025 but assured positive growth.

"This is a big uncertainty in terms of how we define our outlook for 2025. But suffice it to say that given the generation side, the closure of employment, I think it will impact the general morale of the field. We will be starting the month of March onwards," he said.