Meralco core income up by 13% in 2021 

Meralco is the country's largest private sector distribution utility which provides power to 36 cities and 75 municipalities. 
Meralco / Company handout

MANILA, Philippines — Pangilinan-led distribution utility Manila Electric Co. (Meralco) said on Monday that its consolidated core net income rose by 13% to P24.6 billion year-on-year on the back of high energy sales volumes and contributions from the firm's power generation business in 2021.

The company reported that its sales volume rose by 6% with residential households accounting for the highest share in power consumption last year.

Residentials made up 37% of Meralco's sales mix in 2021, followed by commercial establishments which accounted for 33%, and lastly, industrials at 30%.

"Continued work-from home and remote learning set-ups amid granular lockdowns pushed residential sales volume to grow 3% to 16,913 GWh (gigawatt hours) from 16,488 GWh year-on-year, despite the slowdown in the second half of 2021," Meralco said in a regulatory filing to the Philippine Stock Exchange.

Commercial sales inched up by 3% to 15,234 GWh in 2021, versus its year-on-year figure as several establishments ramped up their vaccination activities and as more businesses opened up with the easing of restrictions. 

Meanwhile, industrial sales almost reached pre-pandemic level after registering the biggest increase of 13% to 13,782 GWh which Meralco said was driven by the "strong performance" of the semiconductor industry during this period. 

In 2021, Meralco also spent a total of P27.5 billion in capital expenditures (capex) to strengthen its distribution network, serve consumer demands, and help its subsidiaries grow. 

For the full-year of 2021, the listed power firm reported consolidated revenues of P318.5 billion, up by 16% from its year-on-year level due to higher electricity revenues. 

In 2020, Meralco posted a core net income of P21.71 billion, lower than its pre-pandemic level after reporting lower electricity sales caused by reduced power purchases. 

Meralco is the country's largest private sector distribution utility which provides power to 36 cities and 75 municipalities. 

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