Distribution Utility (DU) firm Manila Electric Company (MERALCO) is on track to surpass Php 43 billion in full-year earnings this year, following record-breaking results as of the end of September.
In a report by Philippine Star, MERALCO Chairman and CEO Manuel V. Pangilinan expressed optimism that the company will exceed its initial profit forecast of Php 43 billion established in the first half of the year, setting the stage for yet another year of unprecedented earnings.
MERALCO reported a consolidated core net income (CCNI) of Php 35.1 billion from January to September, a 17% increase compared to the Php 30 billion recorded in the same period in 2023.
The growth in earnings was driven by consistent growth in sales volume from its DU segment and stronger contributions from the power generation and retail electricity supply (RES) businesses.
The distribution business contributed 59% to the bottom line, followed by power generation at 25% and RES and non-electricity businesses at 16%.
Meanwhile, consolidated reported net income grew by 19% to Php 33.8 billion, up from Php 28.4 billion last year, and revenues rose six percent to Php 355.4 billion from Php 335.2 billion.
For the third quarter alone, MERALCO posted record core earnings of Php 11.9 billion, a 10% increase from the previous Php 10.8 billion.
Pangilinan noted that while sales volume remained strong during the quarter, he expects this to slow down in the final quarter due to fewer operating days.
Looking forward, Pangilinan anticipates another profitable year in 2025, driven by organic growth and new investments, some of which are still pending approval from the Philippine Competition Commission.
In the first nine months of the year, MERALCO spent Php 26 billion on capital expenditures for distribution network improvement projects, solar plant development, and the purchase and construction of telecommunications towers.