MANILA, Philippines – The Manila Electric Company (Meralco) is on track to reach its P43-billion profit goal for 2024 after posting its “highest” third-quarter consolidated core net income (CCNI).
The Philippines’ largest private sector electric distribution firm on Monday, October 28, said it scored P11.9 billion in the third quarter thanks to record growth across all of its business segments.
As of end-September, the company had already generated P35.1 billion up by 17% year-on-year from P30.023 billion in the same period in 2023.
“Our third quarter performance held the double-digit growth in Meralco’s nine-month CCNI, driven by the continued growth momentum of the DU (distribution utility), power generation, and RES (retail electricity supply) segments. Sales volumes in the third quarter remain strong as preparations for the holidays begin,” Meralco Chairman and Chief Executive Officer Manuel Pangilinan said in a statement.
However, the company expects growth to slow down in the last quarter as most institutions — from schools to private offices — go on respective holiday breaks.
Still, Pangilinan said: “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.”
Meralco’s consolidated nine-month revenues stood at P355.4 billion.
The company recorded a steady increase in distribution utility sales volumes from January to September, up 7% to another record high — 40,872 gigawatt hour (GWh) — from 38,164 GWh in the same period last year. Its commercial segment made up for the majority of the energy sales at 37%, residential at 36%, and the industrial sector stood at 26%.
Despite the government’s move to ban Philippine offshore gaming operators, Meralco’s commercial sales stood at 15,261 GWh — up 8% from the previous year’s 14,122 GWh. Hybrid work arrangements did not impact the segment as office occupancy rates continue to rise, while new malls continue to open and more people go out to eat.
The residential segment grew 10% to 14,758 GWh from 13,363 GWh in 2023. Meralco points to the creation of new customer accounts, with around 7.9 million as of writing (from 7.7 million in same period in 2023), higher electricity consumption, and the warm weather. (READ: To beat the heat, Filipinos buy more than 1,000 aircons a day on credit, says finance firm)
Meanwhile, Meralco reported its industrial segment continued to recover with a 2% bump to 10,743 GWh from 10,750 GWh, partly thanks to the semiconductor and non-metallic sectors although curbed by the steel sector’s challenges.
Meralco adjusted its energy sales volume to 6% growth with around 53,350 GWh from an earlier 4.7% projection.
“The drivers will still be high growth in residential, followed by commercial, and a slight modest growth in terms of the industrial segment,” Meralco First Vice-President Ferdinand Geluz said in a press briefing on Monday.
The company spent a total of P26 billion in the past nine months to develop its assets. Meralco used P15.3 billion for its distribution network projects, while the rest was allocated to develop solar power plants and facilities for its telco tower business. – Rappler.com