Generation units, sales powered Meralco earnings by 47% in H1

MANILA  -Power distributor Manila Electric Co. (Meralco) saw its earnings grow by 47 percent to P19.1 billion in the first half of the year driven by the strong performance of its power generation business alongside record-high sales.

According to the company, consolidated energy sales volume grew by 3 percent to 24,792 gigawatt-hours (GWh) from 23,968 GWh the previous year as demand recovered in the commercial and residential segments.

Meralco PowerGen Corp. (MGen), a wholly owned power generation unit, contributed P6 billion, which is significantly higher than the P2.3 billion recorded in 2022. Meralco attributed this to the improved performance of PacificLight Power Pte. Ltd., the MGen unit that operates an 800-megawatt liquefied natural gas facility in Jurong Island, Singapore.

“As we expect this growth trajectory to continue, we will aggressively invest in our 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.

Commercial sales reached 9,162 GWh from January to June this year, a growth of 10 percent, surpassing the prepandemic midyear sales volume of 8,951 GWh in 2019.

This was mainly due to business recovery as in-person activities including concerts, conventions and business gatherings resumed, Meralco said.

During the period in review, residential sales likewise recovered to 8,629 GWh, a slight increase from 8,506 GWh previously.

Lower production and demand due to plant shutdowns pulled down industrial sales by 2 percent to 6,928 GWh.

The energy company’s power generation units also supported a 13-percent growth in consolidated revenues to P224.8 billion.

Meralco chair Manuel V. Pangilinan said he remained optimistic the company would surpass its 2022 performance, citing better contributions from PacificLight.

“We will be a bit conservative in the second semester. The real challenge would be on how we can achieve profitability consistently for the next year and beyond,” he told reporters at a press briefing on Monday. INQ