Meralco profit jumps 34% on buoyant hotel, leisure energy demand
MANILA, Philippines —Higher energy sales and improved performance of its power generation business pulled up the 2023 earnings of utility giant Manila Electric Co. (Meralco) to P38 billion despite costlier power purchased from suppliers.
According to Meralco, this is a 34-percent increase from its year-ago net income of P28.4 billion.
Excluding nonrecurring items, or one-off items not typically part of the main business of Meralco, consolidated core net income last year registered a 37-percent increase to P37.1 billion.
The company on Monday said its full-year consolidated energy sales volumes rose by 4 percent to 51,044 gigawatt-hours (GWh).Business recovery and stronger demand from the hotels and leisure sectors triggered a 9-percent increase in commercial sales to end at 19,005 GWh, surpassing the prepandemic level.
The residential segment registered a 4-percent growth to 17,781 GWh due to higher usage of cooling appliances amid the warmer conditions triggered by the El Niño weather phenomenon.
Industrial demand up 1%
Energy sales to industrial customers, meanwhile, dipped by 1 percent to 14,113 GWh due to production shutdowns and supply challenges in the construction sector.
Manuel Pangilinan, chair and CEO of Meralco, remained optimistic that his company would be able to maintain robust performance this year.
READ: Meralco considers deploying micro nuclear reactors in 14 sites
“We expect to move forward with our long-term goal of achieving sustainable energy security through our investments in utility-scale power generation projects, including exploring the possible adoption of nuclear energy in the country,“ Pangilinan said.
The cost of power purchased from suppliers slightly climbed by 2 percent to P328.2 billion on the back of peso depreciation and more expensive replacement power for the terminated contracts of San Miguel Corp. units South Premiere Power Corp. (SPPC) and Sual Power Inc. (SPI).
Bidding failure
To recall, the Court of Appeals ordered both companies in June last year to cease supplying a total of 1,000 megawatts (MW) power to Meralco. SPI and SPPC aborted their deals with the distributor due to a surge in fuel costs.
READ: ERC approves termination of Meralco, SMC deals
As for Meralco’s power generation business, subsidiary Meralco PowerGen Corp. contributed P9.7 billion, an 80-percent climb from the previous year on the back of “continuing positive performance” of Singapore-based unit PacificLight Pte. Ltd.
Meanwhile, the only two companies that have expressed their interest in bidding for the 260-MW capacity requirement of Meralco for the summer season have withdrawn, resulting in a failed bidding.
Jose Ronald Valles, Meralco first vice president and head of regulatory management, told reporters that they would apply for a second round of bidding with the Department of Energy. INQ
