Power retailer Manila Electric Co. may exceed its P43-billion profit guidance for 2024 after posting a record high consolidated core net income in the first nine months of 2024, a top executive said Monday.
Consolidated core net income in the first three quarters climbed 17 percent to P35.1 billion from P30 billion in the same period last year.
Meralco attributed the higher income to the consistent increase in sales volumes of the distribution utility (DU) and higher contributions from the power generation and retail electricity supply (RES) businesses.
“Based on the strength of Meralco’s financial and operating results for the nine months accompanied by a continuing positive outlook, 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 chairman Manuel Pangilinan said.
“We look forward to another profitable year in 2025 from organic growth and contributions from our new investments, some of which are awaiting approval from the Philippine Competition Commission,” he said.
Pangilinan said the company remained optimistic about the continued expansion of the economy under the leadership of President Ferdinand Marcos, Jr., with full-year economic growth forecasts hovering around 6 percent and the potential to outpace other Southeast Asian nations.
“Easing inflation pressures and sustained spending on major infrastructure projects which Meralco actively supports and would help. Our recent partnerships with reputable South Korean firms to explore nuclear energy projects in the Philippines also reflect our commitment to the government’s emphasis on sustainability,” said Pangilinan.
Meralco said of the total nine-month CCNI, the DU business accounted for 59 percent or P20.5 billion, while power generation brought in P8.9 billion or 25 percent.
The retail electricity service (RES) and non-electricity businesses had a combined CCNI contribution of P5.7 billion or 16 percent share.
Meralco’s consolidated reported net income also rose 19 percent to P33.8 billion from P28.4 billion a year ago.
“Our third-quarter performance held the double-digit growth in Meralco’s nine-month CCNI, driven by the continued growth momentum of the DU, power generation, and RES segments. Sales volumes in the third quarter remained strong as preparations for the Christmas holidays begin,” Pangilinan said.
“This, however, is expected to taper off leading into the fourth quarter with fewer operating days, compared with the first semester which is characterized by weather-driven consumption, increased commercial and residential sale—fueled by sustained economic growth and hybrid work and school arrangements,” he said.
He said Meralco PowerGen Corp. also continued to contribute significantly to the Meralco CCNI with higher plant availability after major maintenance activities conducted at the start of the year.
MGEN had a combined power generation capacity of 2,417 MW (net) as of end September 2024 from its diversified power generation portfolio in the Philippines and Singapore, delivering 11,556 GWh of energy, or 3 percent more compared with the same period last year.
