Manila Electric Co. said Monday consolidated core net income rose 15 percent in the first nine months to P18.1 billion from P15.7 billion in the same period last year after a 6-percent increase in sales volume and higher contribution from business units and subsidiaries.
Net income increased 47 percent in the nine-month period to P16.5 billion from P11.3 billion a year earlier on exceptional charges arising from the impairment recognized from the company’s investment in PacificLight Power Ltd. in 2020.
“Our financial results through September are encouraging, and there is indication that we will exceed the CCNI achieved last year,” Meralco chairman Manuel Pangilinan said.
Meralco posted an income of P21.7 billion in 2020, a 9-percent decline from P23.8 billion in 2019.
Consolidated energy sales rose 6 percent in the first three quarters to 34,398 gigawatt-hours from 32,539 gWh in 2020 as commercial and industrial sectors recovered in the nine-month period following more flexible community quarantine restrictions and sustained growth in the residential sector.
Residential sales accounted for 37 percent of sales volume, while commercial and industrial sales accounted for 33 percent and 30 percent, respectively.
Residential and commercial sales grew 2 percent while industrial sales registered the highest increase at 16 percent, backed by strong performance of the semiconductor industry amid high demand for microchips, electronic parts and devices; growth from cement and steel industries stimulated by public and private construction projects; and higher operational capacities in the food and beverage, and plastics industries.
Pangilinan said the sudden but significant rise in fuel prices across the board–gas, coal and oil – which can impact generation margins and the lingering effect of the pandemic remain key risks to the fourth-quarter outlook.
“We will nonetheless continue to be steadfast as we collectively learn to navigate this new normal and slowly mitigate the impact of both these adverse developments to lives and businesses,” he said.
Power generation arm Meralco PowerGen Corp. contributed P934million to CCNI as of end-September with P150 million as MGen realized increased income from 2,251-megawatt total combined power generation capacity.
Meralco’s consolidated revenues went up by 11 percent to P231.7 billion from P208.8 billion, boosted by electricity revenues, which grew by 11 percent to P225.4 billion from P203 billion. Non-electricity revenues contributed P6.3 billion, marking a 9-percent increase from the P5.8 billion reported in the same period in 2020.
Higher pass-through charges caused Meralco’s average retail rate to increase slightly to P8.08 per kWh from P8.04 per kWh.
Meralco spent P18.5 billion in capital expenditures as of end-September, of which almost 60 percent or P10.9 billion went to networks CAPEX. About 90 percent of the networks capex was spent on new connections, asset renewals and load growth projects, while the balance was used to support other projects including the government’s ‘Build, Build, Build’ program and the Meralco electrification program,
Operating expenses amounted to P22.7 billion, up by 12 percent from P20.3 billion in the same period last year. These expenses were allocated toward increased business activities and accelerated maintenance work on distribution facilities.
Meralco’s customer count increased 4 percent to 7.4 million as of end-September.
