Tycoon Manuel V. Pangilinan expects Manila Electric Co. (Meralco) to exceed the P43-billion income target set for the year, following the record financial performance from January to September fueled by its distribution and power generation businesses.
At a briefing on Monday, the Meralco chair and chief executive officer expressed confidence that Meralco could finish 2024 even stronger.
“Based on the strength of Meralco’s financial and operating results for the nine months accompanied by a continuing positive outlook, we expect to exceed the P43 billion profit guidance we set out in the first half, paving the way for another year of record earnings,” the billionaire said.
The growth, he said, would be realized “across the board.”
In the first nine months, Meralco kept its strong financial position with its core net income recording double-digit growth of 17 percent, reaching P35.1 billion against the P30 billion booked in the same period last year.
Meralco chief financial officer Betty Siy-Yap said the group’s distribution business continued to provide the largest chunk, contributing 59 percent or P20.5 billion to the bottom line. Power generation came next with P8.9 billion, while retail electricity supply operations and nonelectricity businesses chipped in P5.7 billion.
Consolidated revenues also went up 6 percent to P355.4 billion.
“Sales volumes in the third quarter remained strong as preparations for the Christmas holidays begin,” Pangilinan said.
Its distribution unit saw energy sales volume climb 7 percent to 40,872 gigawatt hours (GWh). Thanks to increases in leisure activities and foot traffic in the retail and hospitality markets, Meralco suffered no dent from the exit of Philippine offshore gaming operators as well as the continuing remote work setups. It said the commercial sector had recorded an 8 percent growth in sales volume to 15,261 GWh.
Amid persistent hot weather despite the rainy season, the residential segment also booked higher growth of 10 percent to 14,758 GWh.
Industrial sales also inched up by 2 percent to 10,743 GWh.
The power distributor giant finished the quarter ending September with 7.99 million customers. It expects to hit the 8 million mark next month.
Pangilinan also said that Meralco PowerGen Corp. continued to provide “significant” contributions to the group amid its “higher plant availability after major maintenance activities conducted at the start of the year.”
So far, the group has spent P26 billion in capital expenditures to beef up its distribution network, pursue solar power farms, as well as acquire and develop telco towers.
“We look forward to another profitable year in 2025 from organic growth and contributions from our new investments, some of which are awaiting approval from the Philippine Competition Commission,” the tycoon said.