Meralco’s core net income jumped 53% to P30b in first three quarters

By Alena Mae S. Flores – November 6, 2023, 9:25 pm
from manilastandard.net

Power retailer Manila Electric Co. (Meralco) said Monday it expects full-year consolidated core net income (CCNI) to reach P37 billion.

The company said its CCNI jumped 53 percent in the first three quarters to P30 billion from a year ago.

Meralco said in a disclosure to the Philippine Stock Exchange that its consolidated reported net income also went up by 44 percent to P28.4 billion from P19.8 billion in the comparative period last year.

“As we approach the close of 2023, it might be appropriate to provide our guidance for our full-year’s performance. In this regard, absent a Black Swan event, Meralco’s CCNI for the full year is likely to land at P37 billion,” Meralco chairman Manuel Pangilinan said.

Meralco attributed the higher CCNI in the nine-month period to increased energy volumes distributed; robust performance of the power generation business led by PacificLight Power Pte. Ltd. Singapore and San Buenaventura Power Ltd. Co; the turnaround of Global Business Power Corp. and completion of the distribution and asset true-up refunds totaling P49.1 billion since 2021.

The power generation business contributed P10.2 billion or 34 percent of CCNI, with significant earnings of operating power plants in Singapore and the Philippines with a combined capacity of 2,240.1 megawatts (MW).

Consolidated revenues went up by 6 percent to P335.2 billion from P 314.9 billion on higher volumes distributed and higher pass-through charges with the depreciation of the peso to an average of P55.488 against the US dollar in the first nine months from P53.598 in the same period in 2022.

Consolidated distribution utility sales volumes rose 4 percent to 38,164 gigawatthours (GWh) from 36,553 GWh in the same period last year.

“We observed the sustained upward trajectory in the volume of energy sold throughout the nine-month period across all customer segments,” Meralco executive vice president and chief operating officer Ronnie Aperocho said.

Aperocho said Meralco expects sales growth reach 4.5 percent to 4.7 percent in 2023 but warned of higher electricity rates.

“In addition, the termination of some of our previously executed PSAs puts further pressure on overall rates, Nonetheless, Meralco remains committed to ensuring continuity of supply and will be conducting a series of competitive selection processes (CSPs) in the coming months in accordance with the recently approved guidelines,” Aperocho said..

Meralco’s sales volume rose 4 percent, while Clark Electric Distribution Corp.’s (Clark Electric) sales went up 7 percent.

The commercial segment accounted for 37 percent of total energy sales mix from 35 percent last year, while residential sales remained at 35 percent.

Industrial segment’s share dropped slightly from 29 percent to 28 percent.

Residential sales volume further recovered and raised year-to-date sales by 3 percent to 13,363 GWh from 12,926 GWh last year on above-average mean temperature.

Increased consumption was also noted in condominiums and dormitories as on-site classes in colleges and universities resumed and on-site work arrangements increased.

The industrial sector gradually showed signs of rebound as the drop in sales volume narrowed to 1 percent at 10,570 GWh versus last year’s 10,677 GWh.

Semiconductors and cement recorded positive performance for the first time in the third quarter, as key accounts diversified into automotive chips and resumed full plant operations.

Food and beverage sectors and generation wheeling from embedded generator sustained growth. Demand for plastics and steel continued to be affected by high input costs and lower plant production.