Meralco posts ‘remarkable’ 2024 financial results–exec

By Lenie Lectura – February 24, 2025
from Business Mirror

The Manila Electric Co. (Meralco) saw its 2024 earnings rise due to higher electricity sales and significant contributions from its generation business.

Consolidated core net income (CCNI) increased to P45.1 billion from P43 billion in 2023 while net income grew 21 percent year-on-year to P45.9 billion last year.

Revenues also increased to P470 billion, driven by the growth in electricity sales volume and higher pass-through transmission charge.

Meralco Chief Operating Officer Ronnie Aperocho described the utility firm’s financial performance last year as “remarkable” as its customer base surpassed the 8-million mark in October last year and it recorded an all-time high energy sales of 54,325 gigawatt hours (GWh).

Consolidated energy sales volumes recorded a 6-percent growth from 51,044 GWh in 2023. Accounting for the largest share of 38 percent in the sales mix, the commercial segment closed the year with 20,406 GWh of energy sold mainly due to business expansion activities. The residential segment, which accounted for 36 percent of the sales mix, rose to 19,455 GWh. The share of the industrial segment in the sales mix was at 26 percent.

Meralco’s customer base stood at 8.04 million at end-2024, 3 percent higher than the 7.83 million customers recorded in 2023.

“The year 2024 saw double-digit CCNI growth – with generation, RES [retail electricity supply] and distribution as well as non-power subsidiaries contributing to the year’s gratifying results. Total share of unregulated businesses now accounts for 38 percent of CCNI.

We previously put together a strategy to maintain a balanced mix of regulated and unregulated businesses to accelerate growth and enhance profitability and we are actively executing this strategy,” Meralco Chairman Manuel V. Panglinan said in a statement.

When asked for the company’s 2025 profit guidance, Pangilinan said the numbers may grow by double digits.  “Double-digit percentage that I could say is 10 percent.  To be precise, we will be at P49.6 billion. Of course, I am encouraging management to achieve P50 billion.”

He said the company will be able to give a profit guidance once the Energy Regulatory Commission (ERC) issues its decision on Meralco’s application of annual revenue requirement (ARR) and Performance Incentive Scheme for the 5th regulatory period (5RP) covering July 1, 2025 to June 30, 2029.

“There’s quite a bit of uncertainty in terms of how we define our outlook for 20025…Until the ERC decides, that’s our view.”

The ERC is expected to issue a ruling before July 1 this year.

Pangilinan said Meralco also moved ahead with critical activates, including securing legislative approval of its franchise renewal starting 2028.

The Senate approved this month on third and final reading House Bill 10926 renewing Meralco’s franchise for another 25 years. This followed the same approval granted by the House of Representatives in November last year.

The consolidated bill is set to be enacted into law once it is endorsed to the Office of the President.