Meralco Chairman Manuel V. Pangilinan said he is optimistic the company can surpass last year’s income, citing stronger distribution volumes, improved generation performance, and the coming contribution of the MTerra Solar project.

Speaking to reporters on the sidelines of Meralco’s annual stockholders’ meeting, Pangilinan said the company would wait for its first-half results before giving specific profit guidance for 2026.

“I think the full-year profits would be ahead of last year, definitely,” Pangilinan said.

Asked if he was optimistic that Meralco could surpass last year’s income, Pangilinan said, “Yes, optimistic, yes.”

Pangilinan said Meralco’s distribution utility volumes improved in May and June compared with the same period last year.

“Actually, if you look at the D.U. volumes are back up in May and June ahead of last year. In May it was ahead by 4%, which is quite good. In June probably 2-3% ahead of last year,” he said.

He also cited stronger performance from Meralco’s generation business, particularly with the expected contribution of MTerra Solar in the coming months.

“The generation business is doing much better than last year, especially with the onset of Terra Solar in the coming months. We’re already exporting, evacuating power to the grid,” Pangilinan said.

He said Meralco expects to deliver more power to the grid as MTerra Solar Phase 1 continues progressing toward completion by August.

MTerra Solar is one of the company’s major renewable energy projects and is expected to support Meralco’s broader generation portfolio. Once completed, the project is expected to combine large-scale solar capacity with battery energy storage, allowing it to store electricity and dispatch power when needed.

Pangilinan said Meralco’s three main businesses are performing well, covering distribution, generation, and retail electricity supply.

“So, generation looks good, even RES. So, all three businesses are doing quite well,” he said.

However, Pangilinan said external risks remain, particularly geopolitical tensions that could affect energy markets.

“Right now the worst challenge is the Iran-U.S. situation,” Pangilinan said, noting that the situation remains uncertain as truces and ceasefires may still be interrupted.

Meralco is also looking at possible locations in the Visayas for additional gas-fired capacity, using excess turbines from its Batangas investment.

The group said there are six turbines with a total capacity of 435 MW, though these may need to be distributed across several locations due to Visayas grid limits. Pangilinan said the Visayas “clearly” needs more capacity.

Can stronger distribution volumes and new generation capacity help Meralco sustain earnings growth despite external risks?

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