Manila Electric Co., the biggest retailer of electricity, said Monday consolidated core net income grew 13 percent in 2021 to P24.6 billion from P21.7 billion in 2020 on the back of a 6-percent increase in sales.
“In 2021, we achieved consolidated core net income of P24.6 billion, 13 percent higher than the P21.7 billion last year on account of increased volume to 46,073 gigawatt-hours and contribution from the different business units including power generation,” Meralco senior vice president and chief finance officer Betty Siy-Yap said during the company’s virtual briefing.
Meralco said the rise was driven by the return of energy sales volume to near pre-pandemic levels and contributions from the power generation business.
Reported net income improved 44 percent to P23.5 billion from P16.3 billion in the absence of exceptional charges arising from the impairment recognized in 2020 on Meralco’s investment in PacificLight Power Pte. Ltd.
“Our excellent operational and financial performance in 2021 reflects Meralco’s continuing efforts to invest in customer-centric innovations and in our digital transformation journey to deliver quality and reliable service to our more than seven million customers, in the midst of a continuing pandemic,” Meralco chairman Manuel Pangilinan said.
Consolidated revenues rose 16 percent to P318.5 billion from P275.3 billion, mainly driven by electricity revenues, which grew by 15 percent to P309.2 billion from P267.9 billion.
Consolidated distribution utility energy sales volumes rose 6 percent to 46,073 gWh in 2021 from 43,572 gWh in 2020 driven on sustained residential consumption, ramp-up in commercial volumes amid more relaxed quarantine restrictions, and strong industrial rebound within the franchise areas.
Meraco said it would spend close to P110 billion to implement its sustainability strategy through 2050.
Meralco president Ray Espinosa said the amount is a “broad figure” based on long-term capital expenditure and was not yet approved by the board. “We still have to get approval every year. If everything will be approved, this is our forecast of how much the budget will be,” Espinosa said.
Meralco chief sustainability officer Raymond Ravelo said about P30 billion would be spent on renewable energy projects, while “about half of that [P110 billion] will be in the non-regulated space.”
The company crafted its long-term sustainability strategy as it aims to drive deep decarbonization through 2050, and core to this strategy is Meralco’s low-carbon transition plan underpinned by its commitment to source 1,500 megawatts of its power requirements in the next five years from clean energy sources, and to build 1,500 MW of renewable energy generation capacity by 2027 through MGen and Global Business Power Corp.
“We also reaffirm our commitment to deeply embed sustainability in our strategy and operations, while embarking on a just, orderly, and affordable transition to clean and earth-friendly energy. Our Long-Term Sustainability Strategy maps out this important decarbonization plan beginning todaythrough 2050,” Pangilinan said.
Meralco will accelerate its decarbonization efforts with the potential adoption of next-generation clean technologies including battery energy storage system, offshore wind and nuclear, specifically small modular nuclear reactors.
