Meralco to overshoot CCNI target for this year–exec

By Lenie Lectura – October 29, 2024
from Business Mirror

The Manila Electric Co. (Meralco) expects to exceed its target consolidated core net income (CCNI) of P43 billion this year, following its strong performance in January to September.

During a news briefing, Meralco Chairman Manuel V. Pangilinan said the utility firm will likely register “north of P43 billion” CCNI at end-2024 mainly due to the strong performance of its electricity distribution and power generation businesses.

From January to September this year, Meralco’s CCNI grew 17 percent to P35.1 billion from P30 billion in the same period last year, owing to the consistent increase in the sales volumes of the distribution utility (DU) and higher contributions from the power generation and retail electricity supply (RES) businesses.

“Our third-quarter performance held the double-digit growth in Meralco’s nine-month CCNI, driven by the continued growth momentum of the DU, power generation, and RES segments,” Pangilinan said.

Of the total CCNI, the DU business accounted for 59 percent or P20.5 billion, while power generation brought in P8.9 billion or 25 percent. The RES and non-electricity businesses had a combined CCNI contribution of P 5.7 billion or 16 percent.

Consolidated net income in January to September also rose by 19 percent to P33.8 billion from P28.4 billion.

Revenues grew 6v percent to P355.4 billion from P335.2 billion in 2023 mainly due to the 7-percent increase in volume sold by the DU as well as the increase in transmission charge.

In particular, energy sales volume went up by 7 percent to 40,872 gigawatt hours (GWh) from 38,164 GWh in the same period in 2023. Sales growth was underpinned by persisting warmer temperatures despite the transition to the rainy season.

During the nine-month period, the commercial segment accounted for 37 percent of the total energy sales mix, consistent with last year while residential increased to 36 percent from 35 percent. Industrial’s share declined to 26 percent from 28 percent.

“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-billion profit guidance we set out in the first half, paving the way for another year of record earnings,” Pangilinan said in a statement.

Meralco’s 2023 CCNI stood at P37.1 billion while consolidated net income hit P38 billion.

“We look forward to another profitable year in 2025 from organic growth and contributions from our new investments, some of which are awaiting approval from the Philippine Competition Commission.”

He was referring to the $3.3 -billion liquefied natural gas facility to be built by Meralco PowerGen Corp., the power generation arm of Meralco, together with the power firm of businessman Ramon Ang and Aboitiz Power Corp.

Meralco spent P26 billion for capital expenditures, of which P15.3 billion were utilized for distribution network projects that included new connections, asset renewals, and load growth projects, among others. The balance was used for the development of solar power plants and facilities for the telco tower business.