Meralco shooting for P50-B profit after record 2024

MANILA, Philippines — While billionaire Manuel V. Pangilinan aired a “big uncertainty” in Manila Electric Co.’s (Meralco) level of profitability this year, the executive remained confident about the group posting at least P50 billion—higher than 2024’s record income.

“There’s quite a bit of uncertainty,” the Meralco chair said, referring to the firm’s pending fifth regulatory period application which would decide on how much distribution costs it could charge to consumers.

The Energy Regulatory Commission has committed to release its decision on the new tariff rate by July 1.

READ: Meralco power rates up by 28¢/kWh in February

But Pangilinan was still optimistic that Meralco—with core businesses reigning in power distribution, generation, and retail electricity supply (RES)—could keep its strong operations.

“As we progress through 2025, we foresee substantial organic sales growth, enhanced EPS (earnings per share), and robust free cash flow, all in alignment with our long-term growth strategy,” Pangilinan said.

“Continuing developments in MGen’s (Meralco Power Gen) power generation build-out, and with improved operational efficiency of our operating DU (distribution unit) businesses and our non-power subsidiaries, are expected to further solidify the Meralco growth story,” he said.

In a press briefing, Meralco executives reported that the group’s consolidated core net income surged by 22 percent to P45.1 billion last year from P37.11 billion in the year before that.

Meralco’s distribution business continued to contribute the biggest chunk of the core profit, reaching P28.1 billion.

This, as energy sales went up by 6 percent to 54,325 gigawatt hours (GWh) from 51,044 GWh.

The power generation business came second with P10.9 billion, while the RES unit and nonelectricity businesses chipped in P6.1 billion.

Consolidated revenues likewise grew by 6 percent to P470.4 billion against the previous P443.6 billion.

Core earnings before interest, taxes, depreciation and amortization also jumped 16 percent to P74.95 billion from P64.36 billion.

Meralco said capital spending in 2024 hit P44.7 billion, with more than half or P24.7 billion used to beef up its distribution network. INQ