Power distribution giant Manila Electric Co. (Meralco) upgraded its profit goal for the year to P43 billion, an increase of about 16 percent over the same period in 2023 due to record energy sales.
“With the steady growth trajectory of the economy, we are satisfied that Meralco will sustain its robust performance throughout the year,” said tycoon Manuel V. Pangilinan, the company’s chair and CEO.
“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.
Meralco had earlier forecast full-year core profit to reach P40 billion. But this was before the release of first semester earnings, which rose 21 percent to P23.2 billion.
Stable dividends
“In terms of dividend, our policy will stay at 50 percent payout of core earnings per share with a lookback to assess and determine if warranted by the then circumstances, if such payout can be improved,” Pangilinan said.
Meanwhile, revenues during the first semester reached P237.5 billion, up 6 percent, driven by higher sales volumes.
Record high volume
In the first half of the year, the company’s consolidated energy sales volumes rose to 26,954 gigawatt hours (GWh) from 24,792 GWhamid a 9 percent increase in Meralco’s volumes and a 7 percent rise in Clark Electric’s volumes.
The commercial segment led the sales mix with 37 percent, followed by residential at 36 percent and industrial at 26 percent.
Residential sales surged 13 percent to 9,715 GWh due to warmer temperatures and more time spent at home, while commercial sales climbed 10 percent to 10,068 kWh, boosted by higher demand in real estate and commercial activities.
