Meralco income jumps 44% on energy demand recovery
BY LENIE LECTURA – FEBRUARY 28, 2022
from Business Mirror
THE Manila Electric Co. (Meralco) reported robust earnings in 2021 due to higher energy sales volume and contributions from its power generation business.
Core profit grew by 13 percent to P24.6 billion last year from
Energy sales volumes from Meralco and Clark Electric Distribution Corp. rose by 6 percent and 10 percent, respectively.
In terms of the sales mix, residential sales accounted for 37 percent, while commercial and industrial sales accounted for 33 percent and 30 percent, respectively.
P21.7 billion in 2020. Net income, meanwhile, jumped by 44 percent year-on-year to P23.5 billion from P16.3 billion due to the absence of exceptional charges arising from the impairment recognized in 2020 on its investment in PacificLight Power Pte. Ltd.
Consolidated revenues went up by 16 percent to P318.5 billion from P275.3 billion, mainly driven by electricity revenues, which grew by 15 percent to P309.2 billion.
Energy sales volumes returned to near pre-pandemic levels as customer count reached 7.4 million at end-2021.
Consolidated distribution utility energy sales volumes in 2021 rose by 6 percent to 46,073 GWh (gigawatt hours) from 43,572 GWh in 2020 driven by sustained residential consumption, ramp-up in commercial volumes amid more relaxed quarantine restrictions, and strong industrial rebound within the franchise areas.
Continued work-from-home and remote learning set-ups amid granular lockdowns pushed residential sales volume to grow 3 percent year-on-year to 16,913 GWh from 16,488 GWh, despite the slowdown in the second half of 2021 due to the coolest temperatures recorded in the last five years, as well as increased mobility of vaccinated individuals outside their homes.
Commercial sales volumes, meanwhile, went up by 3 percent to 15,234 GWh in 2021 from 14,766 GWh, owing to the ramp-up of vaccination activities and ease in restrictions, as well as higher foot traffic and relaxed rules for minors that drove demand in the retail, restaurants, public transport, and hospitality sectors.
Industrial sales volumes returned to near pre-pandemic levels, registering the highest increase of 13 percent to 13,782 GWh from 12,176 GWh, backed by the strong performance of the semiconductor industry with the high demand for microchips, electronic parts, and devices, as well as higher operational output in the construction-related, food and beverage, and plastics industries.
Meralco’s customer count stood at 7.4 million at end-December. Energization of new customers hit an all-time high, exceeding 2019 and 2020 levels.
As of end-December, Meralco spent P27.5 billion for capital expenditures (capex), of which almost P16.4 billion went to networks capex, which would be used to fund new connections, asset renewals, load growth projects, support for the government’s “Build, Build, Build” program and the Meralco Electrification Program.
Operating expenses amounted to P31.7 billion, higher by 23 percent than the 2020 figure due to the increase in maintenance activities for distribution facilities amid easing quarantine restrictions, higher expenses of Meralco PowerGen Corp. (MGen) with the consolidation of GlobalBusiness Power Corp., and the increase in expenses of other subsidiaries.
Its power generation arm, MGen, contributed P1.2 billion to Meralco’s core profit. The amount, which was higher than the P435 million the previous year, was mainly driven by the contributions of San Buenaventura Power Ltd. Co. and PowerSourceFirst Bulacan Solar Inc.
