Manila Electric Co. (MERALCO) revealed that its earnings for the first quarter of 2023 increased due to an upsurge in energy costs and the contribution of its power generation section.
In a disclosure to the Philippine Stock Exchange yesterday, the energy firm said its consolidated core net income increased by 40% year-on-year from January to March, amounting to P9 billion, and its consolidated revenue increased by 23%, totaling P105.6 billion.
The increase is due to a few contributing factors, such as higher pass-through charges as natural gas prices rose, the weakening of the peso, the increase in generation charges as fuel prices rose, and more purchases from the spot market.
MERALCO’s average retail rate rose to P10.41 per kilowatt hour (KWh) during the first quarter.
For the first quarter, the commercial segment drove MERALCO’S consolidated distribution energy sales to reach 11,287-gigawatt hours (GWh).
The distribution company’s commercial sales volume rose by 11% year-on-year to 4,213 GWh, reflecting an increase in demand following the reopening of the economy. However, residential sales decreased by 3% to 3,701 GWh, as people resumed their outdoor activities. The industrial segment also declined by 3% year-on-year, amounting to 3,336 GWh.
The company said that P5.8 billion is set aside for distribution-related refunds, which pushed the average retail rate to drop. MERALCO also calculated that P5 billion was spent on capital expenditures in the first quarter. Of that amount, P4.5 billion is for improving its network.