MANILA Electric Co. (Meralco) on Monday reported a 29% increase in its second-quarter (Q2) consolidated core net income, reaching P13.12 billion, up from P10.16 billion the previous year.
This growth was driven by higher sales volumes in the distribution business and increased plant availability in power generation, the electric power distribution company said in a statement.
“With the steady growth trajectory of the economy, we are satisfied that Meralco will sustain its robust performance throughout the year,” Chairman and Chief Executive Officer Manuel V. Pangilinan said.
“Beyond the core distribution business, we continue to invest in more generation capacity which will help address, if not eliminate, instances of supply insufficiency in the country’s power grid, and support the growing demand for power,” he added.
Core earnings before interest, taxes, depreciation, and amortization increased by 24% to P21.96 billion.
For the six months ending in June, the power distributor recorded a consolidated core net income of P23.2 billion, up by 21% from P19.2 billion last year. Of this total, the distribution business contributed P12.8 billion, power generation accounted for P6.2 billion, and retail electricity supply and non-electricity businesses generated a combined P4.2 billion.
Consolidated reported net income rose by 26% to P22.4 billion from P17.9 billion last year. Consolidated revenues increased by 6% to P237.5 billion.
For the first half of the year, energy sales volume grew to 26,954 gigawatt-hours (GWh) from 24,792 GWh. The volumes of Meralco and Clark Electric Distribution Corp. increased by 9% and 7%, respectively.
“The six-month sales volumes got a boost from second-quarter sales which hit a new record—with monthly volumes breaching the 5,000 GWh level in May, largely driven by double-digit growth in residential and commercial segments,” the power distributor said.
Residential sales volume rose by 13% to 9,715 GWh from 8,629 GWh last year, driven by warmer temperatures and increased time spent at home by consumers.
Commercial sales volume climbed by 10% to 10,068 GWh from 9,162 GWh, supported by steady consumer demand and expansions in real estate, retail, restaurants, and hotels.
Industrial sales increased by 2% to 7,097 GWh from 6,928 GWh, reflecting the continued recovery of plastics and cement industries, as well as sustained performance in food and beverage and semiconductor sectors.
Singapore-based Pacific-Light Power Pte. Ltd., a subsidiary of Meralco PowerGen Corp. (MGen), saw a 29% decrease in its core net income to PHP 6.4 billion.
San Buenaventura Power Ltd. Co.’s core net income declined by 3% to PHP 1.7 billion, while Global Business Power Corp. reported a 78% increase to PHP 1.5 billion.
MGen’s renewable energy arm, MGen Renewable Energy, Inc., recorded a core net income of PHP 131 million, up by 68%.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
