The Manila Electric Company (Meralco) posted a consolidated core net income (CCNI) of PHP25.5 billion in the first half of 2025. This marked a 10% increase from PHP23.2 billion in the same period last year. The growth was attributed to solid contributions from its distribution utility business and the continued expansion of its power generation segment.

Reported net income rose 5% to PHP23.6 billion, while consolidated revenues reached PHP245.2 billion, which is up 3% year-on-year. The increase was driven by higher pass-through generation and transmission charges, greater sales volumes from the retail electricity segment, and higher revenues from participation in the reserve market.

Meralco PowerGen Corporation (MGen) contributed PHP9.4 billion to the CCNI, accounting for 37% of the total and is up from 27% last year. The distribution utility remained the largest contributor at 54% or PHP13.7 billion. Retail electricity supply and non-electricity businesses accounted for the remaining 9%.

Total energy sales reached 33,778 GWh, with distribution utility sales rising slightly to 27,091 GWh. Despite a high base in 2024 due to El Niño conditions, Meralco added 200,000 new customers, thus raising its total customer base to 8.13 million as of end-June.

MGen delivered 12,644 GWh of energy in the first half, a 66% increase year-on-year, supported by the full commercial operations of Excellent Energy Resources, Inc.’s (EERI) three gas units in Batangas, LNG capacity from Chromite Gas Holdings and PacificLight Power in Singapore, and increased output from newly operational solar plants.

The MTerra Solar project, led by MGreen, completed the installation of 778 MW of solar panels within eight months of its groundbreaking. Phase 1 of the project is 54% complete as of June, and the facility is on track to become the largest solar PV installation in the country.

Capital expenditures for the first six months totaled PHP47.5 billion. Of this, 71% was allocated to renewable energy developments. The distribution business accounted for PHP13.7 billion, with spending directed toward new connections, asset renewals, and system upgrades.

Meralco’s average retail electricity rate rose by 11% to PHP11.4058 per kWh, primarily due to higher liquefied natural gas (LNG) and transmission charges. Despite higher costs, the company maintained its 12-month moving average system loss at 5.88%, within regulatory limits.

The Board of Directors approved interim cash dividends of PHP11.328 per share, representing 50% of core earnings per share, to be paid on September 22 to shareholders of record as of August 27.

S&P Global Ratings recently reaffirmed Meralco’s BBB credit rating and revised its outlook to Positive. They cited the company’s strong business position, improved scale, and diversified utility operations.

Meralco reaffirmed its guidance for low double-digit CCNI growth in 2025, citing continued momentum in the power generation business and steady contributions from its regulated distribution segment.

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