Meralco sees record P23 billion profit this year

MANILA, Philippines — Manila Electric Co. (Meralco) is set for another record year as it expects core profit to rise to over P23 billion on the back of sustained growth at the end of the third quarter.

In a briefing yesterday, Meralco chairman Manuel Pangilinan said the company would be able to surpass its projected core earnings of P23 billion.

The power utility giant reported a core net income of P22.4 billion last year, up  11 percent from 2017.

As of the end of September, Meralco’s core net earnings grew 11 percent to P18.5 billion.

Reported net income, meanwhile, remained flat at P18.3 billion even as revenues went up six percent to P241.1 billion.

Meralco saw energy sales rise 6.3 percent to 35,005 GWh, driven by the residential segment in particular.

Even its subsidiary, Clark Electric Distribution Corp. (CEDC), reported an 11 percent rise in energy sales volume.

“More than just pleasant surprises, the six percent and 11 percent volume growths within the Meralco and Clark Electric franchise areas, respectively, are testaments of the robust distribution systems we have built and maintained, even while we await further approvals for capital expenditures filed,” Pangilinan said.

Meralco said benign inflation, a more favorable interest rate environment, stable foreign remittances, and a growing services sector provided the backdrop for the stable growth in sales volume.

“Manageable inflation together with increased liquidity in the financial system provides opportunities for growth across all customer segments. There is no doubt that there will be significant domestic economic expansion with the expected improvement in government public investments in the coming months, in addition to the inflow from remittance of our overseas Filipino workers,” Pangilinan said.

Meralco also registered a 4.2 percent jump in customer count to 6.82 million as of the end of September, of which 92.1 percent are residential accounts.

“We anticipate sustained growth for Meralco resulting from the country’s continued overall economic expansion as well as growth that will follow the government’s ongoing infrastructure development programs,” Pangilinan said.