Power retailer Manila Electric Co. expects a 6-percent sales growth in 2022 on the back of the strong rebound of the commercial segment from the pandemic, an executive said Sunday.
“We are looking at close to 6-percent gigawatt-hours sales growth for the year 2022 compared to 2021, and this is actually also 4-percent higher than 2019 numbers [pre-pandemic year],” Meralco chief commercial officer and head of customer retail services Ferdinand Geluz said.
Geluz said the growth drivers this year are commercial establishments amid the more relaxed health protocols and restrictions and expanding industries such as plastics, food and beverage.
Meralco’s consolidated energy sales already surpassed the pre-pandemic levels in the third quarter, as sales volume went up 6 percent to 36,553 gWh from 34,398 gWh a year ago.
Meralco posted a 9-percent increase in consolidated core net income in the first nine months from P18.1 billion on higher energy sales and increased earnings of its power generation business.
The power retailer’s net income grew 20 percent to P19.8 billion from P16.5 billion in 2021.
Meralco chairman Manuel Pangilinan said the full-year income was expected to be better than last year’s amid the economic reopening.
Pangilinan said power demand would continue to grow despite several challenges, including elevated food and energy prices.
“As we anticipate robust pandemic recovery efforts, there is a good indication that Meralco will surpass our 2021 CCNI,” Pangilinan said.
Meralco’s CCNI reached P24.6 billion in 2021, up 13 percent from P21.7 billion in 2020 on the back of a 6-percent increase in sales.
“Meralco remains one with the government and the private sector in ensuring long-term energy security while fully supporting the government’s push to advance the country’s low-carbon energy transition,” Pangilinan said.
Meralco said the resumption of face-to-face schooling, employment rate improvement and fewer mobility restrictions provided more leg room for businesses to recover and expand in the quarter.
Commercial sales volumes grew by 14 percent to 12,841 gWh from 11,281 gWh in the nine-month period, with August and September hovering at growth levels of around 20 percent.
Demand continued to recover and grow towards pre-pandemic levels in high-performing sectors such as retail, real estate, hotels and restaurants.
Onsite schooling also boosted sales volume in the education and transport sectors.
Meanwhile, residential sales volume growth was tempered at 12,926 gWh from 12,746 gWh last year.
The industrial segment posted a 4-percent increase in year-to-date sales volumes to 10,677 gWh from 10,263 gWh last year as the food and beverage and plastics and packaging industries went up.
Steel plants also operated at full capacity and contributed to higher sales.
The semiconductor industry saw a decline on lower global demand for consumer electronics.
Consolidated revenues reached P314.9 billion, or 36 percent higher than P231.7 billion a year earlier because of higher pass-through charges from high global fuel prices.