Manila Electric Company (MERALCO) said that its earnings swelled during the first half of the year due to the impact of the dry season and the El Nino phenomenon.
In a report by Philippine Star, MERALCO chief financial officer Betty Siy-Yap said that the consolidated core net income from January to June saw an increase from Php 19.2 billion to Php 23.2 billion, around 21%.
Additionally, the consolidated net income has grown by 26%, from Php 17.9 billion to Php 22.4 billion, while revenues also hiked by 6%, to Php 237.5 billion from Php 224.8 billion.
Siy-Yap noted that the growth stemmed from the distribution utility’s expanded sales volume, the enhanced performance of the retail electricity segment, and the increased availability of power generation facilities in the second quarter.
Meanwhile, the distribution business emerged as the major contributor to the bottom line, delivering 55% of the total with Php 12.8 billion.
Total energy sales also surged to 26,954 gigawatt-hours (GWh) from 24,792 GWh. This growth was driven by a 9% increase in MERALCO’s sales and a 7% rise in Clark Electric Distribution Corporation’s sales.
Power generation added Php 6.2 billion, or 27%, to the overall increase, while retail electricity supply and non-electricity ventures combined to contribute Php 4.2 billion, or 18%.
Operating expenses expanded by 8% annually, reaching Php 19.5 billion, mainly due to the costs associated with maintaining distribution utility facilities during high heat periods.
In the first half of the year, MERALCO invested Php 19.9 billion in capital expenditures, allocating Php 10 billion for upgrades to the distribution network and using the rest for solar projects and acquiring new assets.
As of June, MERALCO’s customer base had grown to 7.9 million, reflecting a 3% increase from the previous year’s 7.7 million.
