The company is pressing ahead with investments in renewable energy, liquefied natural gas and battery storage to strengthen the country’s energy security.
“We expect that the energy industry will continue to face uncertainty caused by geopolitical developments in the Middle East. Consequently, global fuel markets are extremely fragile and volatile,” Pangilinan, the chair and CEO of Meralco, said in a statement on Wednesday.
The cautious outlook came as Meralco’s first-half core net income rose 3.8 percent to P26.5 billion. Reported net income increased 11 percent to P26.3 billion.
Growth was driven by higher earnings from power generation, which offset softer performance at the distribution utility. Power generation profit climbed 11 percent to P10.5 billion on higher energy output, LNG investments and expanding renewable energy projects.
“Meralco will continue supporting programs and initiatives that will be beneficial to consumers both in the near-term and in the long run. MTerra Solar, which we inaugurated earlier this month, serves as a tangible demonstration of our commitment to be part of the solution, advance the country’s clean energy transition, and contribute to energy security,” Pangilinan said.
Generation offsets softer power sales
Meralco’s diversified businesses helped cushion weaker electricity sales at its distribution utility.
Investment push continues
Meralco spent P39 billion on capital expenditures during the first half. It invested P26 billion in renewable energy and battery storage projects, while P12.9 billion went to network upgrades, new customer connections and other infrastructure.
The average retail electricity rate rose 15 percent to P13.09 per kilowatt-hour, mainly because of higher generation and transmission charges. Meralco’s own distribution charge, however, fell 5 percent to P1.36 per kWh following regulatory adjustments.
The board also declared an interim cash dividend of P11.758 per share, equivalent to 50 percent of core earnings per share.
—Edited by Miguel R. Camus
