In its quarterly press briefing on Oct. 28, the country’s largest electricity distributor and retailer said this bullish outlook follows a strong financial performance in the first nine months of 2024, during which Meralco’s consolidated core net income rose by 17 percent to P35.1 billion, compared to P30 billion during the same period last year.
The surge in earnings is attributed to higher sales volumes across Meralco’s business units, particularly the distribution utility, which posted record-high sales volumes of 40,872 gigawatt-hours.
Both residential and commercial segments saw robust growth, increasing by 10 percent and 8 percent, respectively, fueled by hybrid work arrangements and economic recovery post-pandemic .
Revenue growth and operational efficiency
Meralco’s consolidated revenues during the first three quarters of 2024 increased by 6 percent to P355.4 billion, driven by a higher volume of electricity sales and increased pass-through transmission charges.
Operational efficiency within the company’s power generation segment, alongside strategic participation in the reserve market, also bolstered earnings contributions during the period.
The power generation unit, Meralco PowerGen, experienced stronger performance following maintenance activities completed earlier in the year. Retail electricity supply operations continued to grow, leveraging competitive energy trading opportunities.
Capital investments and credit rating upgrade
Meralco invested P26 billion in capital expenditures focused on enhancing its distribution network, developing solar energy facilities, and expanding telecommunications infrastructure.
These strategic investments, coupled with operational stability, led to an upgrade in the company’s credit rating to ‘BBB’ from S&P Global, highlighting Meralco’s financial strength and positive growth outlook .
Optimism for 2024 and beyond
With the peak travel and holiday season contributing to sustained energy demand, Pangilinan expressed optimism about the company’s ability to surpass its profit target for this year.
Meralco expects demand to taper slightly in the fourth quarter but remains confident in its capacity to maintain growth momentum
“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,” he said.
