Meralco six-month core income up 47% to P19.2 billion

By Alena Mae S. Flores – July 31, 2023, 3:15 pm
from manilastandard.net

Power retailer Manila Electric Co. said Monday consolidated core net income in the first six months reached P19.2 billion, or 47 percent higher than P13.1 billion in the same period last year, led by the 186-percent increase in contribution of the power generation business.

Meralco chairman Manuel Pangilinan (second from left) leads a briefing to announce the second-quarter financial performance of the power distributor.

Meralco said consolidated reported net income also climbed 36 percent to P17.9 billion from P13.1 billion a year ago.

Consolidated distribution utility energy sales volumes rose 3 percent in the first six months to 24,792 gigawatt-hours from 23,968 gWh, as volumes of Meralco and Clark Electric Distribution Corp. increased 3 percent and 7 percent, respectively.

“Considering Meralco’s operational and financial performance in the first half of the year, it is  reasonable for Meralco to show record sales and earnings for the full year 2023. Beyond the core distribution business, we have always considered the expansion of our power and non-power subsidiaries as important growth pillars for Meralco,” Meralco chairman and chief executive  Manuel Pangilinan said.

“We expect a significant boost to our bottom  line this year from the power generation business in particular, which will also drive Meralco’s growth moving forward, especially as we pursue larger generation projects that will help meet the country’s growing demand for power and decarbonization goals,” Pangilinan said.

Consolidated revenues increased 13 percent to P224.8 billion from P199.6 billion last year, on the effect of higher fuel prices on pass-through charges of the distribution utilities and energy fee of the non-renewable power generation plants.

The depreciation of the peso against the US dollar which averaged at 55.233 in the six-month period 52.157 a year ago; increase in spot prices and energy purchases from the Wholesale Electricity Spot Market, combined impact of the 3-percent growth in volumes distributed and slightly higher average  distribution rate with the completion of the refund in November last year also contributed to higher revenues.

“Our record-high sales volumes reflect strong rebound in terms of power demand. As we expect this growth trajectory to continue, we will aggressively invest in distribution network upgrades and expansion and implement more programs that will improve overall customer experience,” Meralco executive vice president and chief operating officer Ronnie Aperocho said.

“When it comes to power rates, we have seen the generation charge decrease for two consecutive  months and still expect lower crude prices in the world market to help pull down power costs this  coming August. However, we are cautious about the possible impact of El Niño on the power sector. We will work closely with the industry as we also seek ways to mitigate any adverse impact on our rates and continuously ensure sufficient supply to our over 7.7 million customers,”Aperocho said.