Meralco beats 2024 target with P45.1-B core income

POWER DISTRIBUTOR Manila Electric Co. (Meralco) saw its core net income rise by 22% to P45.1 billion in 2024, driven by growth in its distribution, power generation, and retail electricity supply (RES) businesses. 

This exceeded its profit guidance of P43 billion for the year.

“2024 was another year of record results for Meralco. Our share price surged to its highest level, closing at P503.50 in October,” Meralco Chairman and Chief Executive Officer Manuel V. Pangilinan said in a statement on Monday. 

“As we progress through 2025, we foresee substantial organic sales growth, enhanced EPS (earnings per share), and robust free cash flow, all in alignment with our long-term growth strategy,” he added. 

The company’s reported net income increased by 21% to P45.9 billion. 

Revenues grew by 6% to P470.4 billion, driven by higher distribution utility volumes and increased pass-through transmission charges.

Meralco’s distribution business accounted for the largest share of earnings at 62% of the total. Power generation contributed P10.9 billion, or 24%, while the RES and non-electricity businesses generated a combined P6.1 billion, or 14%. 

Energy sales volume rose by 6% to 54,325 gigawatt-hours (GWh) from 51,044 GWh in 2023. Volumes attributable to Meralco and Clark Electric Distribution Corp. grew by 6% and 4%, respectively, while Shin Clark Power Corp. contributed an additional 4 GWh.

By segment, the commercial sector recorded a 7% increase in energy sales, reaching 20,406 GWh from 19,005 GWh in 2023, driven by business expansion.

Residential energy sales rose by 9% to 19,455 GWh from 17,781 GWh a year ago, as the strong El Niño phenomenon led to prolonged use of cooling devices at home.

“Consistent energization of horizontal developments in greater Metro Manila and resilient organic consumption further boosted residential sales,” the power distributor said. 

Sales in the industrial segment inched up by 1% to 14,318 GWh from 14,113 GWh, as modest growth in the semiconductor industry — the segment’s top contributor — was not enough to offset declines in the steel industry and embedded generation. 

In power generation, Meralco’s renewable energy unit, MGen Renewable Energy, Inc., posted a core net income of P376 million, marking a 199% increase from the previous year. 

San Buenaventura Power Ltd. Co. recorded a core net income of P3.2 billion, up 26% year on year, while Meralco Thermal, formerly known as Global Business Power Corp., saw a 411% surge in earnings.

Meanwhile, Singapore-based Pacific Light reported an 18% decline in earnings to P13.3 billion.

After surpassing its 2024 profit guidance, Meralco has set a new earnings target of at least P50 billion for 2025. 

However, Mr. Pangilinan noted “quite a bit of uncertainty” in earnings growth this year due to pending action on its fifth regulatory rate reset. 

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in ����ý through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera