Meralco Q1 net income up on higher energy sales

MANILA Electric Co. (Meralco) recorded an 18.9% increase in its consolidated net income to P9.6 billion for the first quarter (q1) of the year, driven by energy sales and growth in other business segments.

“[The increase was] due to higher energy sales volume of the distribution business and ongoing contributions from power generation, retail, electricity, and non-power-related businesses,” said Betty C. Siy-Yap, Meralco’s senior vice-president and chief finance officer, during a media briefing on Monday.

The company saw an 11% increase in its consolidated core net income to P10.1 billion for the period.

Core earnings before interest, taxes, depreciation, and amortization rose by 14.7% to P17.8 billion.

The company’s revenues remained flat at P104.5 billion “due to decreased pass-through charges and energy fees,” Ms. Yap said.

“Meralco has set the pace in the first quarter of the year with the strong performance of our businesses, which we will strive to sustain throughout the year. Our growth prospects go beyond creating value for our shareholders,” Meralco’s Chairman and Chief Executive Officer Manuel V. Pangilinan said.

“The opportunities we are pursuing are always anchored on the commitment to support economic development and contribute to uplifting the lives and welfare of more Filipinos,” he added.

For the three-month period, energy sales volume grew by 9% to 12,307 gigawatt-hours (GWh) driven by double-digit growth of commercial and residential segments, as well as recovery of the industrial segment.

Commercial sales volume increased by 11% to 4,678 GWh due to rising business activities and strategic expansions in real estate, retail trade, and hotels.

The residential segment saw a 12% increase to 4,144 GWh, attributed to the “prolonged usage of cooling appliances at home as the dry spells associated with El Niño persisted.”

Sales volume in the industrial segment improved by 3%, primarily driven by the scaling up of operations in the semiconductor sector, as well as increased production in the food and beverage and plastics industries.

Singapore-based Pacific Light, a subsidiary of Meralco PowerGen Corp. (MGen), saw a 57% decline in its earnings to P2.3 billion as the market “stabilized.”

The core net income of San Buenaventura Power Ltd. Co. decreased by 49% to P465 million, while Global Business Power Corp. saw a 7% decline to P273 million.

MGen’s renewable energy arm, MGen Renewable Energy, Inc., reported a core net income of P46 million, up 64% from the same period last year.

“Because of the scheduled maintenance works that needed to be done in January [and] part of February, there are certain volumes that were not produced in the first quarter this year,” Mr. Pangilinan said.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

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