Meralco income grew 13% last year on higher sales

Manila Electric Co.’s (Meralco) consolidated core net income for 2021 rose by 13 percent to P24.6 billion from P21.17 billion the year prior as a surge in demand from industrial customers brought segment sales to near prepandemic levels.

The firm also recorded a consolidated net income of P23.5 billion, up 44 percent from 2020, while core earnings per share increased by 13 percent year-on-year to P21.83.

In a press briefing on Monday, Meralco reported a 6-percent increase in energy sales “driven by sustained residential consumption, ramp-up in commercial volumes amid relaxed quarantine restriction and strong industrial rebound within the franchise areas.”

Residential sales accounted for 37 percent of total sales while commercial and industrial sales comprised 33 percent and 30 percent, respectively.

The work-from-home and remote learning setups pushed Meralco’s residential sales to grow by 3 percent. This was despite the slowdown in electricity consumption in the second semester of 2021 due to cooler temperatures.

Commercial sales, meanwhile, were driven by aggressive vaccination activities and more relaxed mobility restrictions, including for minors. Higher foot traffic drove demand in the retail, restaurant, public transport and hospitality sectors.

The highest sales increase was recorded in the industrial segment, which was up 13 percent. Meralco said the strong performance of the semiconductor industry boosted demand for microchips, electronic parts and devices, while higher operational output in the construction, food and beverage and plastics industries also improved sales.

For 2021, Meralco’s customer count increased by 4 percent to 7.4 million from 7.1 million in 2020. The energization of new customers for both ordinary service and project-covered applications hit an all-time high, exceeding Meralco’s 2019 and 2020 levels.

During the period, Meralco also spent P27.5 billion in capital expenditures, 60 percent of which went to improving its networks.

—Karl R. Ocampo INQ